According to statistics released today (11 September) by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) increased whereas those of commercial real estate loans (CRELs) dropped month-on-month in July 2024. With regard to the outstanding balances, both RMLs and CRELs witnessed declines on a monthly basis.
New lending approved
In July 2024, new RMLs approved by Macao banks rose by 5.5% month-on-month to MOP1.27 billion. Of which, new RMLs to residents, representing 97.1% of the total, grew by 4.9% to MOP1.23 billion; the non-resident component increased by 30.0% to MOP37.33 million. The monthly average of new RMLs approved between May and July 2024 was MOP1.16 billion, down 3.4% from the previous period (April to June 2024).
New CRELs decreased by 12.6% month-on-month to MOP1.92 billion. Within this total, new CRELs to residents, which occupied 99.0% of the total, fell by 13.1% to MOP1.90 billion; new CRELs to non-residents grew to MOP19.67 million. The monthly average of new CRELs approved between May and July 2024 was MOP2.33 billion, up 10.8% from the previous period (April to June 2024).
Outstanding balances
As at end-July 2024, the outstanding value of RMLs fell by 0.5% month-on-month or 4.1% year-on-year to 223.56 billion, attributable to the repayment of loans with large denomination. Of which, the resident component made up 95.6% of the total. When compared with the previous month, outstanding RMLs to residents and non-residents dropped by 0.4% and 2.4% respectively.
The outstanding value of CRELs was MOP153.63 billion, which decreased by 0.3% from the preceding month or 4.5% from a year ago. Of which, the resident component made up 93.5% of the total. When compared with the previous month, outstanding CRELs to residents and non-residents fell by 0.2% and 0.5% respectively.
Delinquency ratios
At the end of July 2024, the delinquency ratio for RMLs was 4.2%, which went up by 0.7 percentage points from a month ago or 3.6 percentage points over a year earlier. The ratio for CRELs was 3.8%, up 0.3 percentage points from a month ago or 2.0 percentage points from end-July 2023.
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.