Macau | Real estate loan approvals cut by half in September y-o-y

Macau (MNA) – New approvals of residential mortgage loans (RMLs) decreased by 47.5 per cent in September 2017 compared with the same period of 2016, data released today by the Monetary Authority of Macau showed. New approvals of commercial real estate loans (CRELs) decreased by 51.1 per cent for the same comparative period.

RMLs approved were down 12.3 per cent month-to-month to MOP2.8 billion. Approvals for residents declined by 11.6 per cent, however they still led the figures, accounting for 97.9 per cent of the total approved mortgages, at MOP2.8 billion. The share of loans to non-residents also decreased by 36.5 per cent to MOP58.2 million (US$7.25 million). New equitable mortgages approved fell by 42.7 per cent year-on-year.

However, commercial real estate loans saw a monthly increase of 57.4 per cent in September to MOP4.4 billion. CRELs to residents made up 99.9 per cent of the total, up 60.9 per cent month-to-month, while new CRELs to non-residents decreased by 91.8 per cent from the previous month to MOP5.2 million.

The delinquency ratio for RMLs was 0.19 per cent by the end of September, while the ratio for CRELs was 0.14 per cent.

The outstanding value of RMLs for the period was MOP188.3 billion, up 0.1 per cent month-to-month and 5.4 per cent from a year ago. The same measure for CRELs was MOP173.6 billion, up 0.8 per cent month-to-month or 2.2 per cent year-on-year.