Commercial property loans increased by 200%

Commercial real estate (CRL) loans approved by Macau banks increased by 210.1% month-to-month to MOP10.02 billion in the month of February, according to data provided by the Monetary Authority of Macao.

The monthly average of new CRELs approved between December 2021 and February 2022 was MOP8.1 billion, down by 10.0% compared with the previous period (November 2021 to January 2022). 

Realtor JLL noted earlier this year that the commercial property market is seeing better days.

Last year, the firm said that 392 retail property transactions were recorded, up 15.0% year-on-year. The majority of the transactions involved below MOP 50 million. 

“Some landlords hedging mortgage repayments with rental income have left their properties vacant” since offering their properties at low rents may lead to decreased valuations, the firm previously stated.

Meanwhile, the new residential mortgage loans (RML) dropped by 41.5% month-to-month to MOP2.05 billion, of which new RMLs to residents, representing 99.0% of the total, fell by 41.6% to MOP2.03 billion.

The monthly average of new RMLs approved between December 2021 and February 2022 was MOP2.7 billion, down by 12.7% from the previous period (November 2021 to January 2022). 

The non-resident component decreased by 19.6% to MOP19.7 million. 

Due to the repeated Covid-19 infections, economic downturn, and high unemployment rate in Macau, property demand decreased, as most of the potential buyers decided to wait and see. 

Last year, the overall residential sales transaction volume shrank significantly, as a total of 5,970 residential sales transactions were registered in 2021, down 6.6% year-on-year.  Presale transactions totalled 467, accounting for only 7.8% of the total residential sales volume, lower than the average levels recorded in the past. LV