According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) grew in March 2014. With regard to outstanding balance, RMLs and CRELs both witnessed increases.

New Lending Approved

In March 2014, new RMLs approved by Macao banks rose 38.0% month-to-month to MOP3.5 billion; of which, 98.1% was extended to residents. In terms of value, new RMLs to residents and non-residents increased 38.0% and 36.4% respectively. When compared with the same period of 2013, new approvals of RMLs witnessed increase of 13.9%.

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) decreased by 16.1% month-to-month to MOP115.8 million. When compared with the same period of 2013, new RMLs collateralised by uncompleted units expanded 25.0%.

New CRELs rose by 24.6% month-to-month to MOP9.4 billion; of which, 72.4% was granted to residents. In terms of value, new CRELs to residents dropped 9.2%. On an annual basis, new approvals of CRELs grew by 287.8%.

Outstanding Balances

As at end-March 2014, the outstanding value of RMLs reached MOP125.0 billion, an increase of 2.2% from one month earlier or 24.5% from a year ago. The resident component made up 95.3% of the total. Compared to end-February 2014, outstanding RMLs to residents grew 2.5% whereas those to non-residents slid 2.4%.

Concurrently, the outstanding value of CRELs increased 5.5% from end-February 2014 and was up 28.1% from end-March 2013 to MOP95.6 billion. Residents accounted for 91.4% of the loans. Compared with one month earlier, outstanding CRELs to residents and non-residents grew 3.6% and 31.5% respectively.

Delinquency Ratios

At the end of March 2014, the delinquency ratio for RMLs increased to 0.06%, up 0.01 percentage point from a month ago and from a year ago. The ratio for CRELs remained virtually the same at 0.05% from end-February 2014, or slid 0.08 percentage points from end-March 2013.