Mortgage loan approvals surge 31% in January

Macau’s banking sector experienced a significant rise in mortgage loan approvals at the start of the year, according to the Monetary Authority of Macao (AMCM).

In January, new residential mortgage loans (RMLs) grew by 31.4% from the previous month, reaching MOP1.33 billion.

Loans approved for local residents accounted for 97.3% of the total, increasing by 32.3% to MOP1.29 billion.

Recently, the bureau reported a 1.3% decrease in the overall residential property price index for November 2024–January 2025, reaching 204.2. The index for Taipa and Coloane fell significantly by 7.2%, while the Macau Peninsula saw a slight increase of 0.4%.

Meanwhile, approvals for non-residents grew by 5.2%, amounting to MOP36.2 million. The three-month average from November 2024 to January 2025 showed a modest 0.8% rise compared to the October-December 2024 period, reaching MOP1.19 billion.

Commercial real estate loans (CRE) saw even stronger growth, surging by 113.2% to MOP1.46 billion in January. Loans granted to local residents accounted for 80.4% of the total, rising by 78.7% to MOP1.18 billion, while non-resident approvals increased to MOP285.86 million.

The three-month average of new CRE loans reached MOP1.01 billion, marking a 37% increase compared to the previous period.

Despite the rise in new loans, the total outstanding residential mortgage loan balance declined slightly due to repayments of large loans.

At the end of January, the total stood at MOP217.63 billion, reflecting a 0.2% drop from the previous month and a 4.8% decrease year-on-year.

Commercial real estate loans totaled MOP150.19 billion, showing a slight 0.2% increase from December but a 4.6% decline compared to January last year. Of these, 92% were granted to residents. LV