Home mortgages tumble

Residential buildings are reflected in a window of a real estate agency in Hong Kong, China, on Sunday, Nov. 21, 2010. Financial Secretary John Tsang on Nov. 19 raised stamp duty and increased deposits, the toughest measures yet to rein in home values that soared 50 percent since January 2009. Photographer: Dale de la Rey/Bloomberg

Local banks approved MOP4.2 billion (US$519.3 million) worth of residential mortgage loans for the last month of 2016, a decrease of 7.8 per cent compared to the MOP4.5 billion recorded one month earlier, although new approved equitable mortgages recorded a double-digit month-on-month increase for the same month.
According to the latest official data, released last Friday by the Monetary Authority of Macau (AMCM), 93.5 per cent of the total newly approved home mortgages were granted to residents, amounting to MOP3.9 billion, a jump of 10.4 per cent month-on-month.
But approved mortgage loans to non-residents plunged by 72.7 per cent month-on-month to MOP268.9 million. AMCM explained the notable decrease was due to the high comparison base of MOP983 million for November.
Nevertheless, total approved equitable mortgages, those collateralised by uncompleted units, rose by 20.4 per cent month-on-month to MOP310.3 million, compared to MOP257.7 million one month previous.
Of the total, those to residents accounted for 97.4 per cent of the total, reaching MOP302.1 million, an increase of 20.5 per cent month-on-month. Meanwhile, those to non-residents also rose by 14.9 per cent month-on-month to MOP8.1 million, up from MOP7.1 million in November.
On a year-on-year comparison, total newly approved residential mortgage loans decreased by 16.6 per cent. In particular, new equitable mortgage loans slumped by 49.6 per cent as compared to one year ago.
As at the end of 2016, the outstanding value of home mortgages was MOP181.8 billion, an increase of 1.2 per cent month-on-month, or 5 per cent year-on-year.
According to AMCM, home mortgages held by residents made up 93 per cent of the total value, amounting to MOP169.1 billion, a slight increase of 0.6 per cent month-on-month, or 3.8 per cent year-on-year, while those of non-residents grew by 10.3 per cent month-on-month, or 24.3 per cent year-on-year, amounting to MOP12.8 billion.

Commercial mortgages
On the other hand, new commercial real estate loans approved by the local banking sector reached MOP4.6 billion for the month, a jump of 125.5 per cent month-on-month.
Particularly, those to non-residents surged by 653.4 per cent month-on-month to MOP357 million, up from MOP47.4 million one month earlier, which AMCM explained was because of ‘larger loan amounts recorded for a number of approvals’ in December.
In addition, those made to residents also recorded a notable increase of 113 per cent month-on-month to MOP4.2 billion, accounting for 92.2 per cent of total newly approved commercial mortgages.
Compared to the same month last year, new approvals of commercial real estate loans, however, decreased by 12.3 per cent, as those to residents went down by 13.2 per cent year-on-year.
Meanwhile, the outstanding value of commercial mortgages declined by 2.1 per cent month-on-month to MOP169.4 billion as at the end of last year, yet the amount still represents an increase of 3.9 per cent as compared to one year ago.
Of the total outstanding value, the resident component accounted for 90.1 per cent, amounting to MOP152.7 billion, a decrease of 1.1 per cent month-on-month, while that of non-residents fell by 10.6 per cent month-on-month to MOP16.8 billion.
Regarding delinquency ratios, the figure for home mortgages was 0.17 per cent as at the end of the year, remaining virtually unchanged from the month previous, but up 0.08 percentage points year-on-year. Meanwhile, the delinquency ratio for commercial real estate loans went up by 0.01 percentage points month-on-month, or 0.11 percentage points year-on-year, to 0.13 per cent.