According to statistics released today (11 July) 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 May 2024.   With regard to the outstanding balances, both RMLs and CRELs witnessed declines on a monthly basis.

New lending approved

In May 2024, new RMLs approved by Macao banks fell by 26.3% month-on-month to MOP1.02 billion. Of which, new RMLs to residents, representing 97.9% of the total, decreased by 27.2% to MOP1.00 billion; the non-resident component increased by 64.5% to MOP22.03 million. The monthly average of new RMLs approved between March and May 2024 was MOP1.11 billion, up 11.4% from the previous period (February to April 2024).

New CRELs increased by 133.2% month-on-month to MOP2.89 billion. Within this total, new CRELs to residents, which occupied 99.8% of the total, rose by 335.7% to MOP2.88 billion; new CRELs to non-residents fell to MOP7.04 million. The monthly average of new CRELs approved between March and May 2024 was MOP1.61 billion, up 67.0% from the previous period (February to April 2024).

Outstanding balances

As at end-May 2024, the outstanding value of RMLs fell by 0.3% month-on-month or 3.5% year-on-year to 225.70 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 0.3% and 0.5% respectively.

The outstanding value of CRELs was MOP155.85 billion, which decreased by 0.2% from the preceding month or 3.5% from a year ago. Of which, the resident component made up 93.5% of the total. When compared with the previous month, outstanding CRELs to residents and non-residents fell by 0.1% and 1.2% respectively.

Delinquency ratios

At the end of May 2024, the delinquency ratio for RMLs rose slightly to 3.7% from a month ago and went up 2.9 percentage points over a year earlier. The ratio for CRELs was 4.7%, up 1.3 percentage points from a month ago or 3.3 percentage points from end-May 2023.

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.

Mortgage loans statistics – May 2024