According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) decreased month-to-month in July 2014 whereas commercial real estate loans (CRELs) increased. With regard to outstanding balance, RMLs and CRELs both witnessed increases. New lending approved In July 2014, new RMLs approved by Macao banks dropped 40.0% month-to-month to MOP5.5 billion; of which, 97.8% was extended to residents. In terms of value, new RMLs to residents and non-residents decreased 22.3% and 94.7% respectively. When compared with the same period of 2013, new approvals of RMLs witnessed increase of 23.6%. New RMLs collateralised by uncompleted units (i.e. equitable mortgage) decreased by 60.6% month-to-month to MOP1.1 billion. The equitable mortgage extended to residents, which accounted for 96.0% of the total, increased 58.1%. Attributable to the lower base for comparison after the implementation of the Legal Regime for Title Transfer of Buildings Under Construction in June 2013, new RMLs collateralised by uncompleted units expanded year-on-year by 3,116.7%. New CRELs increased by 60.5% month-to-month to MOP17.5 billion; of which, 88.2% was granted to residents. In terms of value, new CRELs to residents and non-residents increased 43.0% and 1,838.5% respectively. The surge of CRELs to non-residents was mainly driven by loans approved for the development of some large-scale tourism-related projects. On an annual basis, new approvals of CRELs grew by 580.3%. Outstanding balances As at end-July 2014, the outstanding value of RMLs reached MOP140.8 billion, an increase of 2.2% from one month earlier or 29.9% from a year ago. The resident component made up 94.1% of the total. Compared to end-June 2014, outstanding RMLs to residents and non-residents grew 2.3% and 0.4% respectively. Concurrently, the outstanding value of CRELs increased 5.7% from end-June 2014 and was up 43.4% from end-July 2013 to MOP111.1 billion. Residents accounted for 90.7% of the loans. Compared with one month earlier, outstanding CRELs to residents and non-residents grew 4.2% and 23.5% respectively. Delinquency ratios At the end of July 2014, the delinquency ratio for RMLs remained virtually unchanged at 0.06% or increased by 0.01 percentage point from a year ago. The ratio for CRELs decreased to 0.07%, down 0.01 percentage point from a month ago and from end-July 2013. Annex 16 September 2014 Detailed figures on Mortgage Loans Statistics are available on: http://www.amcm.gov.mo/economic_statistics/economic.htm.
