Statistics | Mortgage and real estate loans on decline

New approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) both decreased simultaneously in April 2016, according to statistics released by the Monetary Authority of Macao.
In April, new RMLs approved by local banks decreased by 4.7 percent month-to-month to MOP2.8 billion, of which 94.1 percent were extended to residents. In terms of value, new RMLs to residents and non-residents fell by 4.1 percent and 14.2 percent respectively. When compared with the same period in 2015, new approvals of RMLs dropped 35.1 percent.
Meanwhile, new CRELs fell by 26.4 percent month-to-month to MOP2.2 billion, of which 88.2 percent were provided to residents. In terms of value, new CRELs to residents dropped by 33.6 percent whereas those to non-residents increased significantly by 272.9 percent, mainly driven by new loans granted to enterprises. On an annual basis, new approvals of CRELs fell by 75.7 percent.
Regarding outstanding balance, RMLs remained virtually unchanged from the previous month while that of CRELs decreased.
At the end of April 2016, the outstanding value of RMLs was MOP174.9 billion, up by 7.8 percent from a year ago, with the resident component amounting to 93.6 percent of the total.
Concurrently, the outstanding value of CRELs decreased by 0.4 percent month-to-month, but recorded a rise of 21.5 percent year-on-year to MOP166.7 billion.