According to statistics released today (10 November) by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) both decreased month-on-month in September 2023.  With regard to the outstanding balances, RMLs dropped whereas CRELs remained virtually unchanged when compared with the previous month.

New lending approved

In September 2023, new RMLs approved by Macao banks fell by 18.8% month-on-month to MOP1.17 billion. Of which, new RMLs to residents, representing 97.7% of the total, decreased by 19.5% to MOP1.15 billion; the non-resident component increased by 34.0% to MOP26.94 million.  The monthly average of new RMLs approved between July and September 2023 was MOP1.27 billion, down 11.7% from the previous period (June to August 2023). 

New CRELs decreased by 67.5% month-on-month to MOP1.14 billion. Within this total, new CRELs to residents, which occupied 82.6% of the total, fell by 73.0% to MOP938.83 million; new CRELs to non-residents increased to MOP197.76 million. The monthly average of new CRELs approved between July and September 2023 was MOP2.32 billion, down 8.4% when compared with the previous period (June to August 2023). 

Outstanding balances

As at end-September 2023, the outstanding value of RMLs fell by 0.3% month-on-month or 2.8% year-on-year to MOP231.7 billion, attributable to the repayment of loans with large denomination. Of which, the resident component made up 95.5% of the total. When compared with the previous month, outstanding RMLs to residents and non-residents dropped by 0.2% and 1.7% respectively.

The outstanding value of CRELs was MOP160.6 billion, which remained virtually unchanged from the preceding month but rose by 1.1% from a year ago. Of which, the resident component made up 93.4% of the total. Outstanding CRELs to residents decreased month-on-month by 0.1% whereas those to non-residents increased by 1.5%.

Delinquency ratios

At the end of September 2023, the delinquency ratio for RMLs stood at 0.9%, which went up by 0.2 percentage points from a month ago or 0.4 percentage points over a year earlier.  The ratio for CRELs was 2.2%, up 0.1 percentage point from a month ago or 1.4 percentage points from end-September 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.