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 decreased month-to-month in January 2023. With regard to the outstanding balances, both RMLs and CRELs witnessed declines on a monthly basis.
New lending approved
In January 2023, new RMLs approved by Macao banks dropped by 52.3% month-to-month to MOP1.44 billion. Of which, new RMLs to residents, representing 96.0% of the total, fell by 47.0% to MOP1.39 billion; the non-resident component also decreased to MOP58.43 million. The monthly average of new RMLs approved between November 2022 and January 2023 was MOP1.95 billion, up 8.5% from the previous period (October to December 2022).
New CRELs dropped by 37.7% month-to-month to MOP976.44 million, all of which were resident loans. The monthly average of new CRELs approved between November 2022 and January 2023 was MOP1.31 billion, down by 61.5% as compared with the previous period (October to December 2022).
As at end-January 2023, the outstanding value of RMLs was MOP237.8 billion, which fell by 0.3% from the previous month or 2.1% from a year earlier. Of which, the resident component made up 95.0% of the total. When compared with the previous month, outstanding RMLs to residents and non-residents decreased by 0.2% and 1.0% respectively.
The outstanding value of CRELs dropped by 2.1% month-to-month or 0.8% year-on-year to MOP161.5 billion, attributable to the repayment of loans with large denomination. Of which, the resident component accounted for 93.5% of the total. When compared with the previous month, outstanding CRELs to residents and non-residents decreased by 2.2% and 1.2% respectively.
At the end of January 2023, the delinquency ratio for RMLs stood at 0.5%, which kept unchanged from a month ago but up 0.2 percentage points over a year earlier. The ratio for CRELs remained at 0.9% from the previous month, but up 0.4 percentage points from end-January 2022.
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.