According to statistics released today (10 October) by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) both decreased month-on-month in August 2024. With regard to the outstanding balances, both RMLs and CRELs witnessed declines on a monthly basis.
New lending approved
In August 2024, new RMLs approved by Macao banks fell by 0.6% month-on-month to MOP1.26 billion. Among them, new RMLs to residents, representing 98.4% of the total, increased by 0.8% to MOP1.24 billion; the non-resident component decreased by 46.8% to MOP19.85 million. The monthly average of new RMLs approved between June and August 2024 was MOP1.24 billion, up 6.7% from the previous period (May to July 2024).
New CRELs decreased by 50.3% month-on-month to MOP954.23 million. Within this total, new CRELs to residents, which occupied 98.5% of the total, fell by 50.5% to MOP940.27 million; new CRELs to non-residents dropped by 29.1% to MOP13.96 million. The monthly average of new CRELs approved between June and August 2024 was MOP1.69 billion, down 27.6% when compared with the previous period (May to July 2024).
Outstanding balances
As at end-August 2024, the outstanding value of RMLs was 223.07 billion, which fell by 0.2% from the preceding month or 4.0% from a year ago; of which, the resident component made up 95.7%. When compared with the previous month, outstanding RMLs to residents and non-residents dropped by 0.2% and 0.5% respectively.
The outstanding value of CRELs fell by 0.4% month-on-month or 4.7% year-on-year to MOP152.99 billion, attributable to the repayment of loans with large denomination; of which, the resident component made up 93.4%. When compared with the previous month, outstanding CRELs to residents and non-residents fell by 0.4% and 0.1% respectively.
Delinquency ratios
At the end of August 2024, the delinquency ratio for RMLs edged up to 4.3% from a month ago, up 3.6 percentage points over a year earlier. The ratio for CRELs stood at 3.8%, which remained unchanged from the previous month but up 1.9 percentage points from end-August 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.