According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) and those of commercial real estate loans (CRELs) increased simultaneously in December 2014. With regard to outstanding balance, RMLs and CRELs both witnessed increases. New lending approved In December 2014, new RMLs approved by Macao banks increased 9.7% month-to-month to MOP3.7 billion; of which, 95.3% was extended to residents. In terms of value, new RMLs to residents and those to non-residents increased 7.1% and 116.6% respectively. When compared with the same period of 2013, new approvals of RMLs witnessed an increase of 23.8%. New RMLs collateralised by uncompleted units (i.e. equitable mortgage) increased by 93.0% month-to-month to MOP789 million. The equitable mortgage extended to residents, which accounted for 91.8% of the total, increased 85.6% while the amount to non-residents surged by 250.1%. New CRELs increased by 74.4% month-to-month to MOP6.3 billion; of which, 87.7% was granted to residents. On an annual basis, new approvals of CRELs increased by 172.7%. The surge of CRELs was mainly driven by large amounts of loans approved to some property developers, using commercial properties already acquired as collaterals and for purposes other than purchase of properties. In terms of value, new CRELs to residents and non-residents increased 60.6% and 347.5% respectively. Outstanding balances As at end-December 2014, the outstanding value of RMLs reached MOP152.9 billion, an increase of 1.3% from one month earlier or 29.3% from a year ago. The resident component made up 94.1% of the total. Compared to end-November 2014, outstanding RMLs to residents and non-residents rose 1.3% and 1.7% respectively. Concurrently, the outstanding value of CRELs increased 3.4% from end-November 2014 and was up 43.1% from end-December 2013 to MOP122.0 billion. Residents accounted for 90.2% of the loans. Compared with one month earlier, outstanding CRELs to residents and non-residents grew 2.8% and 9.4% respectively. Delinquency ratios At the end of December 2014, the delinquency ratio for RMLs remained virtually unchanged from a month ago at 0.07% or increased 0.01 percentage point from a year ago. The ratio for CRELs was 0.05%, down 0.01 percentage point from a month ago or up 0.02 percentage points from end-December 2013.
