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 January 2021. With regard to the outstanding balances, RMLs rose whereas CRELs witnessed a decline.

New lending approved

In January 2021, new RMLs approved by Macao banks fell by 18.3% month-to-month to MOP2.84 billion. Of which, new RMLs to residents, representing 98.5% of the total, dropped by 18.5% to MOP2.79 billion; the non-resident component also decreased by 4.2% to MOP43.3 million. The monthly average of new RMLs approved between November 2020 and January 2021 was MOP3.1 billion, up by 1.1% from the previous period (October to December 2020). 

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) fell by 34.6% month-to-month to MOP322.6 million. On an annual basis, new equitable mortgage approved dropped by 35.9%.

New CRELs grew by 84.0% month-to-month to MOP3.60 billion. Within this total, new CRELs to residents, which occupied 98.7% of the total, increased by 82.8% to MOP3.55 billion; new CRELs to non-residents also rose to MOP48.4 million. The monthly average of new CRELs approved between November 2020 and January 2021 was MOP2.5 billion, up by 8.1% as compared with the previous period (October to December 2020). 

Outstanding balances

As at end-January 2021, the outstanding value of RMLs was MOP235.3 billion, which rose by 0.1% month-to-month or 1.7% from a year ago. Of which, the resident component made up 94.5% of the loans. When compared with the previous month, outstanding RMLs to residents went up by 0.2%, whereas those to non-residents dropped by 0.7%.

The outstanding value of CRELs decreased by 1.1% month-to-month or 6.5% from a year earlier to MOP166.7 billion, attributable to the repayment of loans with large denomination. Residents accounted for 93.3% of the loans. Compared with a month earlier, outstanding CRELs to residents and non-residents dropped by 1.2% and 0.1% respectively.

Delinquency ratios

At the end of January 2021, the delinquency ratio for RMLs remained virtually unchanged from the previous month at 0.25%, but up by 0.01 percentage point over a year earlier. The ratio for CRELs was 0.51%, up by 0.01 percentage point from a month ago or 0.12 percentage points from end-January 2020.