According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) both increased in August 2022. With regard to the outstanding balances, RMLs dropped whereas CRELs witnessed an increase.
New lending approved
In August 2022, new RMLs approved by Macao banks rose by 116.9% month-to-month to MOP1.67 billion. Of which, new RMLs to residents, representing 98.0% of the total, increased by 112.6% to MOP1.63 billion; the non-resident component also grew to MOP33.2 million. The monthly average of new RMLs approved between June and August 2022 was MOP1.3 billion, down by 1.9% from the previous period (May to July 2022).
New RMLs collateralised by uncompleted units (i.e. equitable mortgage) increased by 193.6% month-to-month to MOP38.1 million. On an annual basis, new equitable mortgage approved dropped by 87.5%.
New CRELs advanced by 47.5% month-to-month to MOP2.05 billion. Within this total, new CRELs to residents, which occupied 99.4% of the total, increased by 52.7% to MOP2.03 billion; new CRELs to non-residents dropped to MOP12.3 million. The monthly average of new CRELs approved between June and August 2022 was MOP5.4 billion, down by 3.6% as compared with the previous period (May to July 2022).
Outstanding balances
As at end-August 2022, the outstanding value of RMLs declined by 0.3% month-to-month and year-on-year to MOP235.3 billion, attributable to the repayment of loans with large denomination. Of which, the resident component made up 94.9% of the loans. When compared with the previous month, outstanding RMLs to residents fell by 0.3% whereas those to non-residents grew by 0.3%.
The outstanding value of CRELs was MOP158.8 billion, which grew by 0.3% from a month earlier but decreased by 2.7% from a year ago. Residents accounted for 93.3% of the loans. Compared with a month earlier, outstanding CRELs to residents rose by 0.4% whereas those to non-residents fell by 0.3%.
Delinquency ratios
At the end of August 2022, the delinquency ratio for RMLs remained virtually unchanged from the previous month at 0.47%, but up by 0.21 percentage points over a year earlier. The ratio for CRELs was 0.77%, up by 0.12 percentage points from a month ago or 0.19 percentage points from end-August 2021.
Residential mortgage loans refer to credit facilities provided by banks to individuals and enterprises that are collateralised by residential real estate in Macao. They include loans to finance purchase of residential properties and other purposes (such as refinancing loans, working capital and trade financing). Commercial real estate loans refer to credit facilities provided by banks to individuals and enterprises that are collateralised by commercial real estate in Macao. They include loans to construction companies and loans to finance property development and investment.
