According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) fell whereas those of commercial real estate loans (CRELs) rose month-on-month in February 2023.  With regard to the outstanding balances, RMLs dropped whereas CRELs witnessed an increase on a monthly basis.

New lending approved

In February 2023, new RMLs approved by Macao banks fell by 15.5% month-on-month to MOP1.22 billion. Of which, new RMLs to residents, representing 96.3% of the total, decreased by 15.2% to MOP1.18 billion; the non-resident component also dropped by 21.6% to MOP45.79 million. The monthly average of new RMLs approved between December 2022 and February 2023 was MOP1.90 billion, down 2.8% from the previous period (November 2022 to January 2023). 

New CRELs increased by 59.6% month-on-month to MOP1.56 billion. Within this total, new CRELs to residents, which occupied 98.3% of the total, rose by 56.9% to MOP1.53 billion; new CRELs to non-residents also grew to MOP26.37 million. The monthly average of new CRELs approved between December 2022 and February 2023 was MOP1.37 billion, up 4.1% when compared with the previous period (November 2022 to January 2023). 

Outstanding balances

As at end-February 2023, the outstanding value of RMLs fell by 0.5% month-on-month or 2.5% year-on-year to MOP236.7 billion, attributable to the repayment of loans with large denomination. Of which, the resident component made up 95.0% of the total. When compared with the previous month, outstanding RMLs to residents dropped by 0.5% whereas those to non-residents edged up 0.1%.

The outstanding value of CRELs was MOP161.7 billion, which rose by 0.1% from the previous month or 0.2% from a year ago. Of which, the resident component accounted for 93.5% of the total. When compared with a month earlier, outstanding CRELs to residents increased by 0.2% whereas those to non-residents fell by 0.4%.

Delinquency ratios

At the end of February 2023, the delinquency ratio for RMLs stood at 0.5%, which kept unchanged from a month ago but up 0.2 percentage points over a year earlier. The ratio for CRELs remained at 0.9% from the previous month, but up 0.4 percentage points from end-February 2022.

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.