According to statistics released today (11 September) 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 July 2023. With regard to the outstanding balances, both RMLs and CRELs witnessed declines on a monthly basis.
New lending approved
In July 2023, new RMLs approved by Macao banks fell by 28.7% month-on-month to MOP1.20 billion. Of which, new RMLs to residents, representing 99.3% of the total, decreased by 28.5% to MOP1.19 billion; the non-resident component dropped to MOP8.88 million. The monthly average of new RMLs approved between May and July 2023 was MOP1.84 billion, down 6.1% from the previous period (April to June 2023).
New CRELs increased by 30.2% month-on-month to MOP2.31 billion. Within this total, new CRELs to residents, which occupied 96.8% of the total, rose by 41.1% to MOP2.24 billion; new CRELs to non-residents fell to MOP73.10 million. The monthly average of new CRELs approved between May and July 2023 was MOP2.62 billion, down 0.6% from the previous period (April to June 2023).
Outstanding balances
As at end-July 2023, the outstanding value of RMLs decreased by 0.4% month-on-month or 2.9% year-on-year to MOP232.8 billion, attributable to the repayment of loans with large denomination. Of which, the resident component made up 95.3% of the total. When compared with the previous month, outstanding RMLs to residents and non-residents fell by 0.2% and 3.1% respectively.
The outstanding value of CRELs was MOP161.1 billion, which dropped by 0.6% from the preceding month but rose by 1.6% from a year ago. Of which, the resident component made up 93.4% of the total. When compared with the previous month, outstanding CRELs to residents fell by 0.7% whereas those to non-residents increased by 0.7%.
Delinquency ratios
At the end of July 2023, the delinquency ratio for RMLs stood at 0.7%, unchanged from a month ago but up 0.3 percentage points over a year earlier. The ratio for CRELs was 1.9%, up 0.1 percentage point from a month ago or 1.2 percentage points from end-July 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.
