According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) increased in June 2014. With regard to outstanding balance, RMLs and CRELs both witnessed increases.

New lending approved

In June 2014, new RMLs approved by Macao banks rose 51.8% month-to-month to MOP9.2 billion; of which, 75.5% was extended to residents. In terms of value, new RML to residents and non-resident increased 16.4% and 2,251.2% respectively. The surge of RMLs to non-residents was mainly driven by loans approved to enterprises, using uncompleted units of residential properties already acquired as collaterals and for purposes other than purchase of residential properties. When compared with the same period of 2013, new approvals of RMLs witnessed increase of 207.4%.

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) soared by 214.8% month-to-month to MOP2.7 billion. The equitable mortgage extended to residents, which accounted for 23.9% of the total, decreased 22.0%. When compared with the same period of 2013, new RMLs collateralised by uncompleted units expanded 29,167.0%.

New CRELs increased by 95.1% month-to-month to MOP10.9 billion; of which, 99.0% was granted to residents. In terms of value, new CRELs to residents increased 97.0% while those to non-residents decreased 0.7%. On an annual basis, new approvals of CRELs grew by 181.2%.

Outstanding balances

As at end-June 2014, the outstanding value of RMLs reached MOP137.8 billion, an increase of 5.4% from one month earlier or 29.5% from a year ago. The resident component made up 94.0% of the total. Compared to end-May 2014, outstanding RMLs to residents and non-residents grew 4.0% and 34.6% respectively.

Concurrently, the outstanding value of CRELs increased 2.7% from end-May 2014 and was up 34.0% from end-June 2013 to MOP105.1 billion. Residents accounted for 92.1% of the loans. Compared with one month earlier, outstanding CRELs to residents and to non-residents grew 2.8% and 2.0% respectively.

Delinquency ratios

At the end of June 2014, the delinquency ratio for RMLs was 0.06%, down 0.01 percentage point from a month ago or levelling off from a year ago. The ratio for CRELs stayed virtually unchanged at 0.08% from a month ago and from end-June 2013.