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 August 2019. With regard to the outstanding balances, RMLs increased whereas CRELs witnessed a decrease.

New lending approved

In August 2019, new RMLs approved by Macao banks fell by 14.0% month-to-month to MOP4.1 billion. Of which, new RMLs to residents, representing 98.5% of the total, dropped by 14.1% to MOP4.0 billion; the non-resident component also decreased by 10.0% to MOP60.4 million. The monthly average of new RMLs approved between June and August 2019 was MOP5.0 billion, up by 1.1% from the previous period (May to July 2019). 

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) decreased month-to-month by 18.3% to MOP250.5 million. On an annual basis, new equitable mortgage approved dropped by 50.3%.

New CRELs grew by 19.5% month-to-month to MOP3.28 billion. Within this total, new CRELs to residents, which occupied 99.5% of the total, rose by 20.4% to MOP3.27 billion. On the other hand, new CRELs to non-residents dropped by 53.5% to MOP15.5 million. The monthly average of new CRELs approved between June and August 2019 was MOP3.4 billion, down by 29.3% as compared with the previous period (May to July 2019). 

Outstanding balances

As at end-August 2019, the outstanding value of RMLs was MOP226.6 billion, up by 0.5% from a month earlier or 10.4% from a year ago. Of which, the resident component made up 93.3% of the total. When compared with the previous month, outstanding RMLs to residents grew by 0.5% whereas those to non-residents fell by 0.8%.

The outstanding value of CRELs decreased by 1.4% month-to-month or 3.2% from a year earlier to MOP181.0 billion, attributable to the repayment of loans with large denomination. Residents accounted for 93.4% of the loans. Compared with a month earlier, outstanding CRELs to residents and non-residents dropped by 1.5% and 0.8% respectively.

Delinquency ratios

At the end of August 2019, the delinquency ratio for RMLs stood at 0.23%, virtually unchanged from a month ago but up by 0.03 percentage points over a year earlier. The ratio for CRELs stayed at 0.29% from a month ago but up by 0.15 percentage points from end-August 2018.