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 decreased in July 2022.  With regard to the outstanding balances, both RMLs and CRELs witnessed declines.

New lending approved

In July 2022, new RMLs approved by Macao banks dropped by 45.0% month-to-month to MOP768.2 million. Of which, new RMLs collateralised by uncompleted units (i.e. equitable mortgage) fell by 56.6% month-to-month to MOP13.0 million. The monthly average of new RMLs approved between May and July 2022 was MOP1.3 billion, down by 18.4% from the previous period (April to June 2022).

New CRELs dropped by 89.3% from a relatively high base last month to MOP1.39 billion. Within this total, new CRELs to residents, which occupied 96.0% of the total, fell by 89.5% to MOP1.33 billion; new CRELs to non-residents decreased by 66.0% to MOP55.0 million. The monthly average of new CRELs approved between May and July 2022 was MOP5.6 billion, down by 1.5% as compared with the previous period (April to June 2022). 

Outstanding balances

As at end-July 2022, the outstanding value of RMLs declined by 0.2% month-to-month but rose by 0.2% from a year earlier to MOP236.5 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 0.2% and 0.4% respectively.

The outstanding value of CRELs dropped by 0.1% month-to-month or 2.6% from a year earlier to MOP158.5 billion. Residents accounted for 93.3% of the loans. When compared with the previous month, outstanding CRELs to residents stayed virtually unchanged whereas those to non-residents fell by 0.7%.

Delinquency ratios

At the end of July 2022, the delinquency ratio for RMLs stood at 0.46%, which went up by 0.06 percentage points from a month ago or 0.22 percentage points over a year earlier. The ratio for CRELs was 0.65%, up by 0.02 percentage points from a month ago or 0.20 percentage points from end-July 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.