According to statistics released today (12 December) 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 October 2023.  With regard to the outstanding balances, both RMLs and CRELs witnessed declines on a monthly basis.

New lending approved

In October 2023, new RMLs approved by Macao banks fell by 24.8% month-on-month to MOP883.00 million. Of which, new RMLs to residents, representing 98.3% of the total, decreased by 24.3% to MOP868.08 million; the non-resident component dropped to MOP14.92 million. The monthly average of new RMLs approved between August and October 2023 was MOP1.17 billion, down 8.3% from the previous period (July to September 2023). 

New CRELs increased by 1.1% month-on-month to MOP1.15 billion. Within this total, new CRELs to residents, which occupied 98.6% of the total, rose by 20.7% to MOP1.13 billion; new CRELs to non-residents fell to MOP15.89 million. The monthly average of new CRELs approved between August and October 2023 was MOP1.93 billion, down 16.8% from the previous period (July to September 2023). 

Outstanding balances

As at end-October 2023, the outstanding value of RMLs fell by 0.3% month-on-month or 2.8% year-on-year to MOP231.1 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 dropped by 0.3% whereas those to non-residents increased by 0.2%.

The outstanding value of CRELs was MOP160.3 billion, which dropped by 0.2% from the preceding month or 2.3% 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 and non-residents fell by 0.1% and 0.4% respectively.

Delinquency ratios

At the end of October 2023, the delinquency ratio for RMLs stood at 1.0%, which went up by 0.1 percentage point from a month ago or 0.5 percentage points over a year earlier.  The ratio for CRELs was 2.5%, up 0.3 percentage points from a month ago or 1.7 percentage points from end-October 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.