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 May 2022.  With regard to the outstanding balances, RMLs dropped whereas CRELs witnessed an increase.

New lending approved

In May 2022, new RMLs approved by Macao banks rose by 5.6% month-to-month to MOP1.74 billion. Of which, new RMLs to residents, representing 98.1% of the total, increased by 5.0% to MOP1.71 billion; the non-resident component also grew by 55.3% to MOP33.4 million. The monthly average of new RMLs approved between March and May 2022 was MOP2.0 billion, down by 4.8% from the previous period (February to April 2022). 

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) fell by 19.4% month-to-month to MOP123.4 million. On an annual basis, new equitable mortgage approved dropped by 26.7%.

New CRELs increased by 60.4% month-to-month to MOP2.65 billion. Within this total, new CRELs to residents, which occupied 91.4% of the total, rose by 46.8% to MOP2.42 billion; new CRELs to non-residents also rebounded to MOP228.1 million. The monthly average of new CRELs approved between March and May 2022 was MOP2.2 billion, a decline of 52.5% from the previous period (February to April 2022). 

Outstanding balances

As at end-May 2022, the outstanding value of RMLs dropped by 0.1% month-to-month but rose by 1.1% from a year earlier to MOP237.8 billion, attributable to the repayment of loans with large denomination. Of which, the resident component made up 94.9% of the loans. When compared with the previous month, outstanding RMLs to residents and non-residents decreased by 0.1% and 0.2% respectively.

The outstanding value of CRELs rose by 0.1% month-to-month or 0.8% from a year earlier to MOP160.3 billion. Residents accounted for 93.5% of the loans. Compared with a month earlier, outstanding CRELs to residents stayed virtually unchanged whereas those to non-residents increased by 1.9%.

Delinquency ratios

At the end of May 2022, the delinquency ratio for RMLs stood at 0.37%, which went up by 0.02 percentage points from a month ago or 0.12 percentage points over a year earlier. The ratio for CRELs was 0.72%, down by 0.02 percentage points from a month ago but up by 0.16 percentage points from end-May 2021.

Residential mortgage loans refer to credit facilities provided by banks to individuals and enterprises that are collateralised by residential real estate in Macao. They include loans to finance purchase of residential properties and other purposes (such as refinancing loans, working capital and trade financing.). Commercial real estate loans refer to credit facilities provided by banks to individuals and enterprises that are collateralised by commercial real estate in Macao. They include loans to construction companies and loans to finance property development and investment.