According to statistics released today (7 February) by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) both decreased month-on-month in December 2023.  With regard to the outstanding balances, both RMLs and CRELs witnessed declines on a monthly basis.

New lending approved

In December 2023, new RMLs approved by Macao banks fell by 5.1% month-on-month to MOP928.53 million. Of which, new RMLs to residents, representing 98.7% of the total, decreased by 4.2% to MOP916.26 million; the non-resident component dropped by 42.5% to MOP12.26 million. The monthly average of new RMLs approved between October and December 2023 was MOP929.82 million, down 8.1% from the previous period (September to November 2023). 

New CRELs decreased by 3.1% month-on-month to MOP868.69 million. Within this total, new CRELs to residents, which occupied 96.8% of the total, fell by 1.7% to MOP841.19 million; new CRELs to non-residents dropped by 32.6% to MOP27.50 million. The monthly average of new CRELs approved between October and December 2023 was MOP971.23 million, down 8.4% when compared with the previous period (September to November 2023). 

Outstanding balances

As at end-2023, the outstanding value of RMLs was 229.25 billion, which fell by 0.4% from the preceding month or 3.9% from a year ago. Of which, the resident component made up 95.5% of the total. When compared with the previous month, outstanding RMLs to residents and non-residents dropped by 0.4% and 1.1% respectively.

The outstanding value of CRELs fell by 0.9% month-on-month or 3.8% year-on-year to MOP158.67 billion, attributable to the repayment of loans with large denomination. Of which, the resident component made up 93.3% of the total. When compared with the previous month, outstanding CRELs to residents dropped by 1.0% whereas those to non-residents remained virtually stable.

Delinquency ratios

At end-2023, the delinquency ratio for RMLs stood at 1.0%, which remained unchanged from a month ago but up 0.6 percentage points over a year earlier. The ratio for CRELs was 3.1%, up 0.6 percentage points from a month ago or 2.2 percentage points from end-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.