RESIDENTS TAKING OUT FEWER COMMERCIAL REAL ESTATE LOANS

2014/11/17

From：Macau Business Daily

The value of commercial real estate loans granted by local banks to Macau residents dropped almost 60 percent in September.

The month of September saw the value of commercial real estate loans granted by banks in Macau decline 56.2 percent to MOP4.8 billion vis-a-vis August’s MOP11 billion. Of these, the biggest drop was in the value of commercial real estate loans taken out by Macau residents, which went down 59.7 percent to MOP4.4 billion. The same loans granted by local banks in August amounted to MOP10.8 billion.
Official figures released Friday by the Monetary Authority of Macau (AMCM) show that while Macau residents accounted for the great majority of such loans granted by local banks, those granted to non-residents in the month of September totalled MOP479.5 million. By contrast, this represents a 104.8 percent increase over that of the previous month.
When looking at the figures on a yearly basis, the overall value of commercial real estate loans increased by 43.6 percent over that of September 2013, with credit granted by banks to non-residents increasing by 255.2 percent and that of residents increasing by 34.7 percent.
Overall, the outstanding value of commercial real estate loans increased 3.6 percent in September over that of the previous month to MOP115.6 billion, a yearly increase of 42.4 percent.
Meanwhile, new residential mortgage loans approved by banks here dropped 9.8 percent in September to MOP4.6 billion month-on-month, representing a slight decrease of 0.8 percent year-on-year. As in every other month, the majority of people taking out real estate mortgage loans were Macau residents accounting for MOP4.4 billion of the total value. This figure is also a 5.9 percent drop from that of a month earlier but a 2.8 percent increase on September 2013.
The most notable drop in new residential mortgage loans, however, was by non-residents, the values for which dropped significantly by 57.4 percent month-on-month from MOP383.1 million, and a total 48.8 percent yearly to MOP163 million. Of these, equitable mortgage collaterised by uncompleted units decreased 13.1 percent to MOP1.2 billion from MOP1.4 billion.
In addition, the outstanding balance of new residential mortgage loans increased overall by 29.8 percent in the month of September from that of a year earlier and 1.9 percent month-on-month to MOP146.8 billion from MOP144 billion in August. That of non-resident workers increased 43.6 percent compared to that of September 2013, while that of residents increased 29 percent in the same period.
The delinquency ratio for residential mortgage loans remained unchanged at 0.07 percent. The ratio for commercial real estate loans increased to 0.08 percent at the end of September.

Copyright@Macau Business Daily