According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) increased while commercial real estate loans (CRELs) declined in August 2015. With regard to outstanding balance, RMLs and CRELs both witnessed increases.

New lending approved

In August 2015, new RMLs approved by Macao banks increased 33.3% month-to-month to MOP5.6 billion; of which, 64.2% was extended to residents. In terms of value, new RMLs to residents decreased 11.4% while those to non-residents rose markedly by 1,292.1%, mainly driven by new loans granted to enterprises collateralised by residential properties. When compared with the same period of 2014, new approvals of RMLs increased by 10.7%.

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) increased by 44.9% month-to-month to MOP1.2 billion. The equitable mortgage extended to residents, which accounted for 93.1% of the total, increased 38.5%. When compared with the same period of 2014, new RMLs collateralised by uncompleted units decreased by 14.7%.

New CRELs fell by 23.0% month-to-month to MOP9.7 billion; of which, 99.2% was granted to residents. In terms of value, new CRELs to residents and non-residents decreased 2.4% and 97.0% respectively. On an annual basis, new approvals of CRELs dropped by 11.8%.

Outstanding balances

As at end-August 2015, the outstanding value of RMLs reached MOP169.0 billion, an increase of 1.2% from one month earlier or 17.4% from a year ago. The resident component made up 94.0% of the total. Compared to end-July 2015, outstanding RMLs to residents and non-residents rose 1.0% and 3.6% respectively.

Concurrently, the outstanding value of CRELs increased 2.0% from end-July 2015 and was up 34.6% from end-August 2014 to MOP150.3 billion. Residents accounted for 88.2% of the loans. Compared with one month earlier, outstanding CRELs to residents and non-residents grew 1.8% and 3.1% respectively.

Delinquency ratios

At the end of August 2015, the delinquency ratio for RMLs was 0.09, up 0.02 percentage points from a month ago and from end-August 2014. The ratio for CRELs remained virtually unchanged from a month ago at 0.04% or down 0.03 percentage points from a year ago.