According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) decreased while those of commercial real estate loans (CRELs) increased in February 2022. With regard to the outstanding balances, RMLs remained virtually unchanged whereas CRELs witnessed a decline.

New lending approved

In February 2022, new RMLs approved by Macao banks dropped by 41.5% month-to-month to MOP2.05 billion. Of which, new RMLs to residents, representing 99.0% of the total, fell by 41.6% to MOP2.03 billion; the non-resident component decreased by 19.6% to MOP19.7 million. The monthly average of new RMLs approved between December 2021 and February 2022 was MOP2.7 billion, down by 12.7% from the previous period (November 2021 to January 2022). 

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) decreased month-to-month by 20.9% to MOP598.9 million. On an annual basis, new equitable mortgage approved rose by 152.9%.

New CRELs increased by 210.1% month-to-month to MOP10.02 billion. The monthly average of new CRELs approved between December 2021 and February 2022 was MOP8.1 billion, down by 10.0% as compared with the previous period (November 2021 to January 2022). 

Outstanding balances

As at end-February 2022, the outstanding value of RMLs was MOP239.1 billion, which remained virtually unchanged from the preceding month but went up by 1.6% from a year ago. Of which, the resident component made up 94.8% of the loans. When compared with the previous month, outstanding RMLs to residents stayed virtually unchanged whereas those to non-residents dropped by 1.2%.

The outstanding value of CRELs fell by 0.8% month-to-month but rose by 1.1% from a year earlier to MOP160.9 billion.  Residents accounted for 93.6% of the loans. Compared with a month earlier, outstanding CRELs to residents and non-residents dropped by 0.8% and 0.5% respectively.

Delinquency ratios

At the end of February 2022, the delinquency ratio for RMLs stood at 0.31%, which went up by 0.01 percentage point from a month ago or 0.06 percentage points over a year earlier. The ratio for CRELs was 0.59%, up by 0.03 percentage points from a month ago or 0.01 percentage point from end-February 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.