Real estate | Decrease of approved mortgage loans in October

Statistics released yesterday by the Monetary Authority of Macao showed that new approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) both decreased in October.

The total of the new RMLs approved by Macau banks decreased by 46.5 percent month-to-month to MOP2.9 billion. Of these, new RMLs to residents, accounting for 97.9 percent of the total, fell by 47 percent from the previous month to MOP2.8 billion.

The non-resident component also dropped by 5.2 percent, noted the statement.

When compared with the same period of 2015, new approvals of RMLs increased by 16.3 percent.

New RMLs collateralized by uncompleted units – which is equitable mortgage – increased by 6.6 percent from the preceding month to MOP269.5 million.

The equitable mortgage extended to residents, which accounted for 97.5 percent of the total, increased by 3.9 percent from the previous month.

On an annual basis, the number of new, equitable and approved mortgages dropped by 14.4 percent.

Meanwhile new CRELs dropped by 31.3 percent from a higher comparison base in the previous month to MOP6.2 billion; and new approvals of CRELs declined by 32.6 percent when compared with last year.

As at end-October 2016, the outstanding value of RMLs was MOP178.6 billion, virtually unchanged from the previous month but up by 4.9 percent from a year ago.

The outstanding value of CRELs was MOP171.5 billion, up by 1 percent month-to-month or 7.3 percent when compared with a year ago.

Residents accounted for 89.1 percent of the loans.