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 March 2021. With regard to the outstanding balances, both RMLs and CRELs witnessed declines.

New lending approved

In March 2021, new RMLs approved by Macao banks rose by 38.9% month-to-month to MOP2.96 billion. Of which, new RMLs to residents, representing 99.7% of the total, grew by 38.9% to MOP2.95 billion; the non-resident component also increased by 49.5% to MOP9.3 million. The monthly average of new RMLs approved between January and March 2021 was MOP2.6 billion, down by 6.1% from the previous period (December 2020 to February 2021). 

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) increased by 32.8% month-to-month to MOP314.6 million. On an annual basis, new equitable mortgage approved dropped by 36.8%.

New CRELs advanced by 17.2% month-to-month to MOP1.92 billion. Within this total, new CRELs to residents, which occupied 99.5% of the total, increased by 24.8% to MOP1.91 billion; new CRELs to non-residents dropped to MOP10.3 million. The monthly average of new CRELs approved between January and March 2021 was MOP2.4 billion, down by 0.5% as compared with the previous period (December 2020 to February 2021). 

Outstanding balances

As at end-March 2021, the outstanding value of RMLs was MOP235.0 billion, which shrank by 0.2% month-to-month but rose by 1.6% from a year ago. Of which, the resident component made up 94.8% of the loans. When compared with the previous month, outstanding RMLs to residents edged up by 0.1% whereas those to non-residents dropped by 4.7%.

The outstanding value of CRELs decreased by 0.7% month-to-month or 12.6% from a year earlier to MOP158.4 billion, attributable to the repayment of loans with large denomination. Residents accounted for 93.0% of the loans. Compared with a month earlier, outstanding CRELs to residents and non-residents decreased by 0.6% and 2.0% respectively.

Delinquency ratios

At the end of March 2021, the delinquency ratio for RMLs remained virtually unchanged from the previous month at 0.24%, but down by 0.01 percentage point from a year earlier. The ratio for CRELs was 0.54%, up by 0.01 percentage point from a month ago or 0.09 percentage points from end-March 2020.