According to statistics released today (12 October) by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) both increased month-on-month in August 2023.  With regard to the outstanding balances, both RMLs and CRELs witnessed declines on a monthly basis.

New lending approved

In August 2023, new RMLs approved by Macao banks rose by 20.7% month-on-month to MOP1.45 billion. Of which, new RMLs to residents, representing 98.6% of the total, grew by 19.9% to MOP1.43 billion; the non-resident component increased to MOP20.11 million.  The monthly average of new RMLs approved between June and August 2023 was MOP1.44 billion, down 21.5% from the previous period (May to July 2023). 

New CRELs increased by 51.0% month-on-month to MOP3.50 billion. Within this total, new CRELs to residents, which occupied 99.4% of the total, rose by 55.0% to MOP3.47 billion; new CRELs to non-residents fell to MOP21.75 million. The monthly average of new CRELs approved between June and August 2023 was MOP2.53 billion, down 3.4% from the previous period (May to July 2023). 

Outstanding balances

As at end-August 2023, the outstanding value of RMLs decreased by 0.2% month-on-month or 2.8% year-on-year to MOP232.4 billion, attributable to the repayment of loans with large denomination. Of which, the resident component made up 95.4% of the total. When compared with the previous month, outstanding RMLs to residents and non-residents fell by 0.1% and 2.1% respectively.

The outstanding value of CRELs was MOP160.5 billion, which dropped by 0.2% from the preceding month but rose by 1.1% from a year ago. Of which, the resident component made up 93.5% of the total. When compared with the previous month, outstanding CRELs to residents and non-residents fell by 0.1% and 1.8% respectively.

Delinquency ratios

At the end of August 2023, the delinquency ratio for RMLs stood at 0.7%, unchanged from a month ago but up 0.3 percentage points over a year earlier. The ratio for CRELs was 2.0%, up 0.2 percentage points from a month ago or 1.3 percentage points from end-August 2022.

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.