According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) increased while those of commercial real estate loans (CRELs) decreased in March 2022.  With regard to the outstanding balances, RMLs dropped whereas CRELs remained virtually unchanged.

New lending approved

In March 2022, new RMLs approved by Macao banks rose by 29.7% month-to-month to MOP2.66 billion. Of which, new RMLs to residents, representing 98.5% of the total, grew by 29.0% to MOP2.62 billion; the non-resident component also increased by 108.7% to MOP41.1 million. The monthly average of new RMLs approved between January and March 2022 was MOP2.7 billion, up by 2.0% from the previous period (December 2021 to February 2022). 

New RMLs collateralised by uncompleted units (i.e. equitable mortgage) fell month-to-month by 25.2% to MOP448.0 million. On an annual basis, new equitable mortgage approved rose by 42.4%.

New CRELs decreased by 76.4% month-to-month to MOP2.37 billion. Within this total, new CRELs to residents, which occupied 99.6% of the total, fell by 76.5% to MOP2.36 billion; new CRELs to non-residents increased to MOP9.8 million. The monthly average of new CRELs approved between January and March 2022 was MOP5.2 billion, a decrease of 35.5% from the previous period (December 2021 to February 2022). 

Outstanding balances

As at end-March 2022, the outstanding value of RMLs dropped by 0.1% month-to-month but rose by 1.6% from a year earlier to MOP238.8 billion, attributable to the repayment of loans with large denomination. Of which, the resident component made up 94.9% of the loans. When compared with the previous month, outstanding RMLs to residents and non-residents decreased by 0.1% and 0.8% respectively.

The outstanding value of CRELs was MOP160.9 billion, which remained virtually unchanged from the preceding month but up by 1.8% from a year ago. Of which, the resident component made up 93.6% of the loans. When compared with the previous month, outstanding CRELs to residents stayed virtually unchanged whereas those to non-residents fell by 0.1%.

Delinquency ratios

At the end of March 2022, the delinquency ratio for RMLs stood at 0.35%, which went up by 0.04 percentage points from a month ago or 0.10 percentage points over a year earlier. The ratio for CRELs was 0.62%, up by 0.03 percentage points from a month ago or 0.02 percentage points from end-March 2021.

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.