Residential loans for non-residents drop 92 percent

According to statistics released yesterday by the Monetary Authority of Macau (AMCM), new approvals of residential mortgage loans (RMLs) fell from the previous month, while those of commercial real estate loans (CRELs) increased in June 2017. With regard to the outstanding balances, those of RMLs and CRELs both increased.

During June, new RMLs approved by Macau banks fell by 15.5 percent month-to-month to MOP4.8 billion. The non-resident component dropped 92.7 percent to MOP108.3 million, from a significantly higher comparison base in the previous month. Meanwhile, the resident component, accounting for 97.8 percent of the total, increased by 11.5 percent to MOP4.7 billion.

Meanwhile, new CRELs rose by 82.1 percent month-to-month to MOP6.1 billion; of which new CRELs to residents, accounting for 98.1 percent of the total, surged by 172.6 percent to MOP6 billion. According to AMCM, the surge was mainly driven by new loans granted to enterprises collateralized by commercial buildings and land.

In contrast, new CRELs to non-residents fell by 89.9 percent from a higher comparison base in the previous month to MOP116.2 million.

When compared with the same period of 2016, new approvals of RMLs increased by 3 percent, while new approvals of CRELs decreased by 6.1 percent.

At the end of June 2017, the outstanding value of RMLs was Mop185.8 billion, up by 0.7 percent from a month earlier or 5.2 percent from a year ago. The resident component constituted 93.8 percent of the total. When compared with the previous month, outstanding RMLs to residents

increased by 0.9 percent, whereas those to non-residents decreased by 2.9 percent.

The outstanding value of CRELs was MOP172.7 billion, up by 2.2 percent month-to-month or 2.1 percent year-on-year. Residents accounted for 89.2 percent of the loans. Compared with a month earlier, outstanding CRELs to residents and non-residents rose by 2 percent and 4.7 percent respectively.