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

New lending approved

In September 2022, new RMLs approved by Macao banks advanced by 15.4% month-to-month to MOP1.92 billion. Of which, new RMLs to residents, representing 99.4% of the total, grew by 17.0% to MOP1.91 billion. On the other hand, the non-resident component fell by 64.9% to MOP11.6 million. The monthly average of new RMLs approved between July and September 2022 was MOP1.5 billion, up by 13.7% from the previous period (June to August 2022). 

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) increased by 63.8% month-to-month to MOP62.3 million. On an annual basis, new equitable mortgage approved dropped by 84.0%.

New CRELs decreased by 8.4% month-to-month to MOP1.87 billion. Within this total, new CRELs to residents, which occupied 91.9% of the total, fell by 15.4% to MOP1.72 billion; new CRELs to non-residents grew to MOP152.2 million. The monthly average of new CRELs approved between July and September 2022 was MOP1.8 billion, a decrease of 67.5% from the previous period (June to August 2022). 

Outstanding balances

As at end-September 2022, the outstanding value of RMLs declined by 0.2% month-to-month or 1.2% year-on-year to MOP234.8 billion, attributable to the repayment of loans with large denomination. Of which, the resident component made up 94.8% of the loans. When compared with the previous month, outstanding RMLs to residents fell by 0.3% whereas those to non-residents grew by 0.8%.

The outstanding value of CRELs was MOP159.3 billion, which remained virtually unchanged from the preceding month but up by 0.8% from a year ago. Of which, the resident component made up 93.2% of the loans. Compared with a month earlier, outstanding CRELs to residents dropped by 0.2% whereas those to non-residents rose by 2.2%.

Delinquency ratios

At the end of September 2022, the delinquency ratio for RMLs stood at 0.48%, which went up by 0.01 percentage point from a month ago or 0.23 percentage points over a year earlier. The ratio for CRELs was 0.80%, up by 0.04 percentage points from a month ago or 0.16 percentage points from end-September 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.