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 September 2020. With regard to the outstanding balances, RMLs increased whereas CRELs witnessed a decline.

New lending approved

In September 2020, new RMLs approved by Macao banks rose by 38.3% month-to-month to MOP6.79 billion. Of which, new RMLs to residents, representing 75.4% of the total, grew by 34.6% to MOP5.12 billion; the non-resident component also increased by 50.7% to MOP1.67 billion. The monthly average of new RMLs approved between July and September 2020 was MOP6.7 billion, up by 12.1% from the previous period (June to August 2020). 

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) decreased month-to-month by 14.9% to MOP528.2 million. On an annual basis, new equitable mortgage approved rose by 99.6%.

New CRELs grew by 45.8% month-to-month to MOP6.19 billion. Within this total, new CRELs to residents, which occupied 98.1% of the total, increased by 44.1% to MOP6.07 billion; new CRELs to non-residents also rose to MOP117.9 million. The monthly average of new CRELs approved between July and September 2020 was MOP4.0 billion, up by 40.6% as compared with the previous period (June to August 2020). 

Outstanding balances

As at end-September 2020, the outstanding value of RMLs was MOP234.0 billion, which rose by 0.5% month-to-month or 2.5% from a year ago. Of which, the resident component made up 94.5% of the loans. When compared with the previous month, outstanding RMLs to residents and non-residents increased by 0.5% and 0.2% respectively.

The outstanding value of CRELs decreased by 2.3% month-to-month or 5.0% from a year earlier to MOP174.0 billion, attributable to the repayment of loans with large denomination. Residents accounted for 93.3% of the loans. Compared with a month earlier, outstanding CRELs to residents and non-residents dropped by 2.4% and 0.2% respectively.

Delinquency ratios

At the end of September 2020, the delinquency ratio for RMLs stood at 0.27%, up by 0.01 percentage point from the preceding month or 0.03 percentage points over a year earlier. The ratio for CRELs was 0.46%, up by 0.01 percentage point from a month ago or 0.09 percentage points from end-September 2019.