Real estate loan approvals soar 50%

New approvals of real estate loans soared more than 50% higher in May 2019 compared with a month earlier, the latest data released by the Monetary Authority of Macao shows.

In May 2019, new residential mortgage loans approved by Macau banks rose by 55.5% month-to-month to MOP3.9 billion. Of which, the resident component, representing 96.4% of the total, grew by 52% to MOP3.8 billion. The non-resident component increased by 309% owing to a relatively low base of MOP142.5 million as its comparison period.

The monthly average of new residential mortgage loans approved between March and May 2019 was MOP3.3 billion, up by 27.5% from the previous three-month period between February and April.

Meanwhile, commercial real estate loans increased by 57.5% month-to-month to MOP7.5 billion.

The monthly average of new commercial real estate loans approved between March and May 2019 was MOP5.6 billion, up by 33.5% as compared with the previous period, February to April 2019.

As at end-May 2019, the outstanding value of residential mortgage loans was MOP221.3 billion, up by 0.8% from a month earlier or 14.3% from a year ago. The outstanding value of commercial real estate loans decreased by 4.5% month-to-month or 3.7% from a year earlier to MOP187.6 billion. DB