Mortgage loans on the rise at end of 2021, commercial loans skyrocket

Mortgage loans for both residential and commercial real estate have recorded significant growth in November 2021, according to statistics released yesterday by the Monetary Authority of Macao (AMCM).

New approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) both increased in November 2021, with new RMLs approved by local banks in particular registering an increase of 35.2% month-on-month to MOP3.15 billion.

The AMCM also noted that MOP3.10 billion worth of RMLs were approved for local residents, representing 98.5% of the total. Meanwhile, the amount of loans granted to non-residents also increased to MOP48.7 million. 

The monthly average of new RMLs approved across September to November 2021 was MOP3 billion, a decrease of 3.5% from the previous period (August to October 2021).

New RMLs collateralized by uncompleted units (i.e. equitable mortgages) also increased by 33% month-on-month to MOP271.8 million. When compared on an annual basis, the amount of new equitable mortgages approved dropped by 13.6%.

Commercial loans 

soar exponentially

New CRELs registered in November last year recorded an exponential increase of 547.7% month-on-month to a total of MOP12.71 billion, AMCM reported.

New CRELs to residents increased by 552.3% to MOP12.69 billion, amounting to 99.9% of the total.

Despite accounting for just 0.1% of the total, CRELs approved to non-residents also increased by 10.2% month-on-month to MOP18.6 million. 

The monthly average of new CRELs approved between September and November 2021 was MOP5.9 billion, an increase of 99.4% compared with the previous period (August to October 2021).

Outstanding balances 

with slight increases

The outstanding balances for both RMLs and CRELs recorded slight increases in November last year, with the outstanding value of RMLs growing by 0.8% month-on-month or 1.8% year-on-year to MOP239.0 billion.

When compared with the previous month, outstanding RMLs to residents and non-residents rose by 0.8% and 0.6% respectively.

The outstanding balance for the CRELs saw a slight increase by 0.3% from the previous month, however dropped by 8% when compared year-on-year with the same month in 2020.

The total outstanding balance of CRELs was MOP159.6 billion at the end of November.

Compared with a month earlier, outstanding CRELs to residents increased by 0.3%, while those to non-residents edged down by 0.1%.

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