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

New lending approved

In August 2014, new RMLs approved by Macao banks dropped 8.3% month-to-month to MOP5.0 billion; of which, 92.4% was extended to residents. In terms of value, new RMLs to residents decreased 13.4% while those to non-residents increased 220.2%. When compared with the same period of 2013, new approvals of RMLs witnessed increase of 51.7%.

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) increased by 27.0% month-to-month to MOP1.4 billion. The equitable mortgage extended to residents, which accounted for 92.9% of the total, increased 22.9%. 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 2,997.8% year-on-year.

New CRELs decreased by 36.9% month-to-month to MOP11.0 billion; of which, 97.9% was granted to residents. In terms of value, new CRELs to residents and non-residents decreased 30.1% and 88.6% respectively. On an annual basis, new approvals of CRELs grew by 169.0%.

Outstanding balances

As at end-August 2014, the outstanding value of RMLs reached MOP144.0 billion, an increase of 2.3% from one month earlier or 30.4% from a year ago. The resident component made up 94.0% of the total. Compared to end-July 2014, outstanding RMLs to residents and non-residents grew 2.2% and 3.1% respectively.

Concurrently, the outstanding value of CRELs increased 0.5% from end-July 2014 and was up 40.0% from end-August 2013 to MOP111.7 billion. Residents accounted for 90.7% of the loans. Compared with one month earlier, outstanding CRELs to residents and to non-residents grew 0.5% and 0.7% respectively.

Delinquency ratios

At the end of August 2014, the delinquency ratio for RMLs remained virtually unchanged at 0.06% or increased by 0.01 percentage point from a year ago. The ratio for CRELs remained virtually unchanged at 0.07% from a month ago and from end-August 2013.