The leading real estate agency in Singapore, PropNex, has announced a profit of $21.9 million for the second half of the financial year 2024, which ended on December 31, 2024. This is a 14.9% decrease from the previous year. The company’s full year earnings amounted to $40.9 million, a 14.4% drop from FY2023.
The decline in revenue of 6.6% from FY2023 to FY2024 was attributed to the sluggish property market. However, to commemorate its 25th anniversary, PropNex has declared a special dividend of 2.5 cents per share, in addition to a final dividend of 3 cents per share. This brings the total dividend payout for FY2024 to a record of 7.75 cents per share, representing a payout ratio of 140.1% and a yield of 8.2%.
Despite the lower earnings, PropNex has observed an increase in activity in the last quarter of 2024, driven by a surge in new private home sales which the company has assisted in selling. According to DBS, the company’s strong pipeline of new launches in 2025 has prompted the bank to upgrade both PropNex and APAC Realty to a “buy” recommendation.
PropNex attributes the delay in reporting the financial impact of these sales – which is expected to take three to four months – to the significant increase in activity. The company is confident in achieving a strong performance in FY2025, given the current positive outlook of the property market, unless there are unforeseen circumstances.
The company has estimated a supply of 13,000 new units (including ECs) for 2025, almost double the supply recorded in the previous year. The private resale market is also expected to remain active with transaction volumes ranging between 14,000 to 15,000 units. This is due to the persistent price difference between new and resale properties, and the preference for larger, move-in-ready homes.
In terms of the HDB resale market, PropNex predicts a price growth of 5% to 7%, with transaction volumes reaching 29,000 to 30,000 units. The company believes that fewer five-year minimum occupation period flats entering the market, together with a continuous demand from urgent homebuyers, unsuccessful Build-To-Order applicants, and budget-conscious families, will continue to support this segment.
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PropNex’s CEO, Ismail Gafoor, has observed strong market interest in newly launched projects such as The Orie, Bagnall Haus, Parktown Residence and ELTA. He anticipates positive demand for developers’ sales in 2025, with a promising lineup of projects. The company also expects the positive economic outlook and lower mortgage rates to further boost market confidence and create opportunities for homebuyers and investors.