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 March 2017. With regard to the outstanding balance, RMLs witnessed a slight increase whereas CRELs dropped.
New lending approved
In March 2017, new RMLs approved by Macao banks increased by 59.6% month-to-month to MOP4.1 billion. Of which, new RMLs to residents, accounting for 97.5% of the total, rose 61.7% to MOP4.0 billion. The non-resident component also increased by 5.0% to MOP101.5 million. When compared with the same period of 2016, new approvals of RMLs increased by 39.5%.
New RMLs collateralised by uncompleted units (i.e. equitable mortgage) increased notably by 91.6% from a lower comparison base in the previous month to MOP333.1 million. On an annual basis, new equitable mortgage approved dropped by 53.3%.
New CRELs increased markedly by 91.2% month-to-month to MOP5.4 billion; of which, new CRELs to residents, accounting for 88.9% of the total, increased by 78.0%, mainly attributed to larger loan amounts recorded for a number of approvals. Those to non-residents soared by 375.0% from a lower comparison base in the previous month to MOP597.2 million. On an annual basis, new approvals of CRELs grew by 77.0%.
Outstanding balances
As at end-March 2017, the outstanding value of RMLs was MOP182.7 billion, up 0.2% from the previous month or 4.5% from a year ago. The resident component made up 93.9% of the total. When compared with the previous month, outstanding RMLs to residents increased by 0.2% whereas those to non-residents decreased by 1.2%.
The outstanding value of CRELs was MOP169.5 billion, down by 0.4% month-to-month but up 1.4% year-on-year. Residents accounted for 89.7% of the loans. Compared with a month earlier, outstanding CRELs to residents decreased by 0.7% whereas those to non-residents rose by 1.7%.
Delinquency ratios
At the end of March 2017, the delinquency ratio for RMLs was 0.18%, down 0.01 percentage point from a month ago but up 0.08 percentage points from a year earlier. The ratio for CRELs was 0.13%, virtually unchanged from the preceding month but up 0.11 percentage points from end-March 2016.