New approvals for residential mortgage loans and commercial real estate loans in Macau saw strong month-on-month growth in June, buoyed by government support measures and relaxed lending limits.
Despite the surge in new approvals, total outstanding loan balances continued their gradual downward trend, while delinquency ratios remained largely stable.
New approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) in Macau recorded strong month-on-month growth in June, according to data released on Friday by the Monetary Authority of Macao (AMCM).
New RMLs approved by Macau banks rose 30.9 per cent compared to May, reaching MOP 1.46 billion (US182million).Almostallweregrantedtoresidents—representing97.9percentofthetotal—atMOP1.43billion(US178.3 million). Meanwhile, the non-resident component fell 17.2 per cent to MOP 30.25 million (US$3.77 million).
Between April and June 2026, the monthly average of new RMLs approved stood at MOP 1.24 billion (US$154.6 million), up 10.9 per cent from the previous period (March to May 2026).
In contrast, new CRELs approved surged 88.0 per cent in June to MOP 1.04 billion (US129.7million),allofwhichwereresidentloans.IntheApril–Junequarter,themonthlyaverageofnewCRELsapprovedwasMOP1.07billion(US133.4 million), up 26.0 per cent compared to the March–May period.
Outstanding balances and delinquency ratios
As at end-June 2026, the outstanding value of RMLs fell by 0.5 per cent month-on-month and 5.0 per cent year-on-year to MOP 201.98 billion (US$25.18 billion). Of the total outstanding balance, the resident component made up 96.8 per cent.
The outstanding value of CRELs dropped to MOP 132.50 billion (US$16.52 billion), down 0.8 per cent from the preceding month and 9.0 per cent from a year ago. The resident component made up 91.3 per cent of the total, falling 0.9 per cent month-on-month, whereas outstanding CRELs to non-residents rose slightly by 0.2 per cent.
At end-June 2026, the delinquency ratio for RMLs remained stable at 3.6 per cent, remaining unchanged both month-on-month and year-on-year. For CRELs, the delinquency ratio remained unchanged from the previous month at 5.6 per cent, but rose by 0.2 percentage points from end-June 2025.
The proportion of non-performing or delinquent bank credit in Macau remains far below the record 25.3 per cent reached in mid-2001, amid the global economic crisis triggered by the bursting of the dot-com bubble.
Policy impact and banking performance
In a March report, real estate consultancy JLL noted that residential property prices in Macau, which fell sharply in 2025, are expected to remain stable in 2026 following government measures to ease mortgage burdens, including stamp duty exemptions and relaxed loan-to-value (LTV) caps.
Since the beginning of this year, financial authorities in Macau raised the maximum loan-to-value ratio cap for residential property purchases from 70 per cent to 80 per cent, while also abolishing property transfer stamp duty.
The guidelines issued by the AMCM aimed to promote the sustainable and stable development of banking activities related to mortgage loans, in line with real estate market support policies introduced by the MSAR Government.
In the first quarter following the implementation of these measures, new RML approvals registered a year-on-year increase of some 25 per cent.
Macaubanks posted a profit of MOP 4.48 billion (US$558.6 million) in the first four months of the year, up 20.7 per cent compared to the same period in 2025.
According to the AMCM, the primary driver behind the profit gain was a 30.3 per cent increase in net interest margin—the difference between interest income on loans and interest expense on deposits—reaching MOP 6.47 billion (US$806.7 million).