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 month-on-month in March 2023.  With regard to the outstanding balances, RMLs dropped whereas CRELs witnessed an increase on a monthly basis.

New lending approved

In March 2023, new RMLs approved by Macao banks rose by 56.5% month-on-month to MOP1.91 billion. Of which, new RMLs to residents, representing 98.7% of the total, grew by 60.5% to MOP1.89 billion; the non-resident component decreased by 44.3% to MOP25.50 million. The monthly average of new RMLs approved between January and March 2023 was MOP1.53 billion, down 19.6% from the previous period (December 2022 to February 2023). 

New CRELs increased by 61.5% month-on-month to MOP2.52 billion. Within this total, new CRELs to residents, which occupied 93.5% of the total, rose by 53.6% to MOP2.35 billion; new CRELs to non-residents grew to MOP163.52 million. The monthly average of new CRELs approved between January and March 2023 was MOP1.68 billion, up 23.2% when compared with the previous period (December 2022 to February 2023). 

Outstanding balances

As at end-March 2023, the outstanding value of RMLs fell by 0.3% month-on-month or 2.7% year-on-year to MOP236.1 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 and non-residents decreased by 0.2% and 1.8% respectively.

The outstanding value of CRELs was MOP162.0 billion, which increased by 0.2% from the previous month or 0.4% from a year ago. Of which, the resident component accounted for 93.4% of the total. When compared with a month earlier, outstanding CRELs to residents and non-residents rose by 0.1% and 1.0% respectively.

Delinquency ratios

At the end of March 2023, the delinquency ratio for RMLs stood at 0.6%, which went up by 0.1 percentage point from a month ago or 0.2 percentage points over a year earlier. The ratio for CRELs was 1.1%, up by 0.1 percentage point from a month ago or 0.5 percentage points from end-March 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.