More mortgages

New mortgage lending for housing jumped 45 per cent year-on-year from MOP3.2 billion to MOP4.6 billion, the Monetary Authority of Macau revealed yesterday. Macau residents accounted for 97.2 per cent of the New Residential Mortgage Loans (RMLs), while non-residents occupied a share of 2.8 per cent.
New loans to residents for buying homes increased 42.2 per cent year-on-year from MOP3.2 billion to MOP4.5 billion. While the amount lent to non-residents continues to be tiny, it increased at a faster rate with a boost of 352.1 per cent year-on-year, from MOP29 million to roughly MOP100 million.
In comparison to September, there was a general increase of 1.8 per cent in new mortgage lending for housing purchase, from MOP4.55 billion to MOP4.60 billion.
In relation to the ninth month of this year, loans to non-residents decreased from MOP163 million to MOP 131 million, which means a month-on-month drop of 19.5 per cent. However, the money lent to residents increased 2.6 per cent from MOP4.3 billion to 4.5 billion.
“The trend for the market to be almost totally dominated by Macau residents has continued in October. As for non-residents, they continue the trend of leaving the market. In spite of the increase of 352.1 per cent their share is still insignificant”, economist Albano Martins told Business Daily.
As for Commercial Real Estate Loans (CRELs) they are following a different path dropping 28.2 per cent year-on-year from MOP5.4 billion to MOP3.8 billion. In relation to such loans the amount lent to residents fell by 30.9 per cent from 5.2 billion to MOP3.6 billion. Loans to non-residents increased 107.8 per cent year-on-year from MOP105 million to MOP219 million.
In month-on-month, CRELs dropped at a slower rate, which means 20.4 per cent from MOP4.8 billion to MOP3.8 billion. Loans to non-residents decreased 54.3 per cent from 480 million to 219 million. Loans for commercial activities fell by 16.7 per cent from MOP4.4 billion to MOP3.6 billion.
“The fact that there are less real estate transactions this year than in 2013 despite the amount of loans increasing demonstrates the rise in property prices and the market bubble”, Martins said.
According to Statistics and Census information in October 2013 there were 3,350 transactions in Macau, while in October 2014 there were 753, which is a decrease of 36.3 per cent.
“Looking at the data and the importance of Macau residents to the mortgage market, it is possible to see that much of the speculation in the real estate market has been carried out by residents”, the economist said.