According to statistics released (11 January) by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) rose whereas those of commercial real estate loans (CRELs) decreased month-on-month in November 2023. With regard to the outstanding balances, both RMLs and CRELs witnessed declines on a monthly basis.

New lending approved

In November 2023, new RMLs approved by Macao banks increased by 10.7% month-onmonth to MOP977.92 million. Of which, new RMLs to residents, representing 97.8% of the total, grew by 10.2% to MOP956.59 million; the non-resident component rose by 42.9% to MOP21.33 million. The monthly average of new RMLs approved between September and November 2023 was MOP1.01 billion, down 13.4% from the previous period (August to October 2023). New CRELs decreased by 22.0% month-on-month to MOP896.12 million. Within this total, new CRELs to residents, which occupied 95.4% of the total, fell by 24.5% to MOP855.33 million; new CRELs to non-residents grew to MOP40.79 million. The monthly average of new CRELs approved between September and November 2023 was MOP1.06 billion, down 45.0% from the previous period (August to October 2023).

Outstanding balances

As at end-November 2023, the outstanding value of RMLs fell by 0.4% month-on-month or 3.1% year-on-year to MOP230.14 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 0.4% and 1.2% respectively. The outstanding value of CRELs was MOP160.09 billion, which decreased by 0.1% from the preceding month or 3.1% 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 0.2% whereas those to non-residents remained virtually stable.

Delinquency ratios

At the end of November 2023, the delinquency ratio for RMLs stood at 1.0%, which kept unchanged from a month ago but up 0.6 percentage points over a year earlier. The ratio for CRELs remained at 2.5% from the previous month, but up 1.7 percentage points from endNovember 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.