According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) both increased in July 2021. With regard to the outstanding balances, RMLs dropped whereas CRELs witnessed an increase.

New lending approved

In July 2021, new RMLs approved by Macao banks advanced by 6.7% month-to-month to MOP4.11 billion. Of which, new RMLs to residents, representing 98.8% of the total, grew by 11.7% to MOP4.06 billion. On the other hand, the non-resident component decreased by 77.5% to MOP48.9 million. The monthly average of new RMLs approved between May and July 2021 was MOP3.7 billion, up by 18.9% from the previous period (April to June 2021). 

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) increased by 30.9% month-to-month to MOP382.9 million. On an annual basis, new equitable mortgage approved dropped by 56.8%.

New CRELs grew by 39.5% month-to-month to MOP11.04 billion. Within this total, new CRELs to residents, which occupied 99.9% of the total, increased by 39.4% to MOP11.02 billion; new CRELs to non-residents also rose to MOP13.3 million. The monthly average of new CRELs approved between May and July 2021 was MOP7.5 billion, up by 33.7% as compared with the previous period (April to June 2021). 

Outstanding balances

As at end-July 2021, the outstanding value of RMLs decreased by 0.3% month-to-month but rose by 1.7% from a year earlier to MOP236.1 billion, attributable to the repayment of loans with large denomination. Of which, the resident component made up 94.8% of the loans. When compared with the previous month, outstanding RMLs to residents and non-residents dropped by 0.3% and 0.8% respectively.

The outstanding value of CRELs was MOP163.1 billion, which advanced by 1.1% from the previous month but dropped by 8.2% from a year earlier. Residents accounted for 93.4% of the loans. Compared with a month earlier, outstanding CRELs to residents increased by 1.3% whereas those to non-residents fell by 0.8%.

Delinquency ratios

At the end of July 2021, the delinquency ratio for RMLs stood at 0.24%, virtually unchanged from a month ago but down by 0.02 percentage points over a year earlier. The ratio for CRELs was 0.40%, down by 0.10 percentage points from a month ago or 0.05 percentage points from end-July 2020.