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) witnessed an increase in August 2020. With regard to the outstanding balances, RMLs and CRELs both increased from the previous month.

New lending approved

In August 2020, new RMLs approved by Macao banks fell by 41.1% month-to-month to MOP4.91 billion. Of which, new RMLs to residents, representing 77.4% of the total, dropped by 36.5% to MOP3.80 billion; the non-resident component also decreased by 52.6% to MOP1.11 billion. The monthly average of new RMLs approved between June and August 2020 was MOP6.0 billion, up by 14.0% from the previous period (May to July 2020). 

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) decreased month-to-month by 29.9% to MOP620.7 million. On an annual basis, new equitable mortgage approved rose by 147.8%.

New CRELs grew by 187.5% month-to-month to MOP4.24 billion. Within this total, new CRELs to residents, which occupied 99.2% of the total, increased by 186.1% to MOP4.21 billion; new CRELs to non-residents also rose to MOP33.0 million. The monthly average of new CRELs approved between June and August 2020 was MOP2.7 billion, up by 42.4% as compared with the previous period (May to July 2020). 

Outstanding balances

As at end-August 2020, the outstanding value of RMLs was MOP232.9 billion, which rose by 0.3% month-to-month or 2.8% from a year ago. Of which, the resident component made up 94.4% of the loans. When compared with the previous month, outstanding RMLs to residents went up by 0.4%, whereas those to non-residents dropped by 0.6%.

The outstanding value of CRELs was MOP178.0 billion, which grew by 0.2% from the previous month but fell by 1.6% from a year earlier. Residents accounted for 93.4% of the loans. Compared with a month earlier, outstanding CRELs to residents increased by 0.2% whereas those to non-residents fell by 0.3%.

Delinquency ratios

At the end of August 2020, the delinquency ratio for RMLs stood at 0.26%, virtually unchanged from a month ago but up by 0.04 percentage points over a year earlier. The ratio for CRELs remained at 0.45%, rising by 0.15 percentage points from end-August 2019.