The latest statistics from the Monetary Authority of Macao indicate that new approvals of both residential mortgage loans (RMLs) and commercial real estate loans (CRELs) have increased in June. The total outstanding balance on the loans also witnessed an increase.
June recorded MOP3.9 billion worth of new residential mortgage loans being approved by Macau banks, representing an increase of 5.7 percent month-to-month. In terms of value, the new loans to residents increased by 6.2 percent whereas those to non-residents decreased by 8.2 percent.
However, comparing these figures with the same period last year, approvals of new RMLs have decreased by 57.1 percent.
New RMLs being collateralized by uncompleted units (i.e. equitable mortgages) decreased by 14.7 percent month-to-month to MOP282 million, which is an 89.7 percent decrease in comparison to the same period last year.
On the other hand, new commercial real estate loans grew by 51.8 percent month-to-month to MOP6.2 billion. In terms of value, new CRELs to residents increased by 64.6 percent while those to non-residents decreased by 45.4 percent. On an annual basis, new approvals of CRELs dropped by 42.7 percent.
As of the end of June 2015, the outstanding value of RMLs had increased by 20 percent year-on-year to MOP165.5 billion.
Currently, the outstanding value of CRELs increased by 34 percent from the end of June 2014 to MOP140.8 billion. The delinquency ratio for RMLs and CRELs both stood at 0.07, with the former down by 0.01 percentage points and the latter up by 0.03 percentage points from one month ago.