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

New lending approved

In November 2014, new RMLs approved by Macao banks decreased 26.9% month-to-month to MOP3.4 billion; of which, 97.6% was extended to residents. In terms of value, new RMLs to residents and those to non-resident decreased 26.6% and 38.2% respectively. When compared with the same period of 2013, new approvals of RMLs witnessed increase of 14.2%.

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) decreased by 50.7% month-to-month to MOP0.4 billion. The equitable mortgage extended to residents, which accounted for 95.5% of the total, decreased 49.7%. Nevertheless, attributable to the lower base for comparison after the implementation of the Legal Regime for Title Transfer of Buildings Under Construction in June 2013, new RMLs collateralised by uncompleted units expanded 223.9% year-on-year.

New CRELs decreased by 5.7% month-to-month to MOP3.6 billion; of which, 95.2% was granted to residents. In terms of value, new CRELs to residents and non-residents decreased 4.8% and 20.4% respectively. On an annual basis, new approvals of CRELs increased by 12.9%.

Outstanding balances

As at end-November 2014, the outstanding value of RMLs reached MOP150.9 billion, an increase of 1.1% from one month earlier or 29.3% from a year ago. The resident component made up 94.1% of the total. Compared to end-October 2014, outstanding RMLs to residents and non-residents rose 1.1% and 0.8% respectively.

Concurrently, the outstanding value of CRELs increased 0.7% from end-October 2014 and was up 39.8% from end-November 2013 to MOP118.0 billion. Residents accounted for 90.8% of the loans. Compared with one month earlier, outstanding CRELs to residents and non-residents grew 0.6% and 1.9% respectively.

Delinquency ratios

At the end of November 2014, the delinquency ratio for RMLs was 0.07%, up 0.01 percentage point from a month ago and from a year ago. The ratio for CRELs was 0.06%, down 0.01 percentage point from a month ago or up 0.03 percentage points from end-November 2013.