Generous terms from both banks and the government have sent Macao on a property buying spree.
New approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) both increased in March, according to the Monetary Authority of Macao (AMCM).
New RMLs approved by local banks surged by 38.9 per cent to MOP 2.96 billion, month-on-month. Those approved for residents accounted for the lion’s share or 99.7 per cent of the total.
From January to March, the monthly average of new RMLs approved stood at MOP 2.6 billion, down 6.1 per cent from the previous period.
On the other hand, new CRELs grew by 17.2 per cent to MOP 1.92 billion in March. Those for residents increased by 24.8 per cent to MOP1.91 billion.
In the first quarter, the monthly average of new CRELs was MOP 2.4 billion, down a modest 0.5 per cent, the Macau Daily Times reported.
Under current regulations, repeated property purchases incur a special stamp duty. However, first-time buyers of property valued at less than MOP 3 million can enjoy a 90 per cent loan from banks, with the government providing a guarantee. First-time buyers purchasing a property worth between MOP 3 million and MOP 6 million can enjoy an 80 per cent loan with government backing.