Propnex Reports Lower Fy2024 Earnings Expects Significant Pick 1Hfy2025
Singapore’s leading real estate agency PropNex has announced its financial results for the second half of its fiscal year 2024, which ended on December 31, 2024. The company reported a profit of $21.9 million, down by 14.9% compared to the same period in the previous year. This brings PropNex’s total earnings for the full fiscal year to $40.9 million, a decrease of 14.4% from the previous fiscal year.
The decline in revenue by 6.6% in fiscal year 2024 was attributed to the relatively slow property market. However, to commemorate its 25th anniversary, PropNex plans to distribute a special dividend of 2.5 cents per share, in addition to a final dividend of 3 cents. This will result in a record total dividend payout of 7.75 cents for fiscal year 2024, representing a payout ratio of 140.1% and a yield of 8.2%.
Despite the decrease in earnings for the year, PropNex experienced a rise in activities in the last quarter of 2024, mainly due to the surge in new private home units that the company assisted in selling. The company explains that the financial impact of these sales will only be reflected in the financial results three to four months later, indicating a significant increase in the current fiscal year 2025.
Taking into account the expected favorable property market outlook in 2025, PropNex is confident of achieving a strong performance in fiscal year 2025, barring any unforeseen events. This is supported by an estimated 13,000 new unit launches (including Executive Condominiums), which is almost double the supply recorded in the previous fiscal year.
The private resale market is expected to remain active, with transaction volumes ranging between 14,000 and 15,000 units. This demand is driven by the price difference between new and non-landed resale properties, the preference for larger and move-in-ready homes, and the limited supply of new properties.
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As for the Housing and Development Board (HDB) resale market, PropNex forecasts a price growth of 5% to 7%, with transaction volumes reaching 29,000 to 30,000 units. The company expects the demand for HDB resale flats to be supported by the scarcity of five-year minimum occupation period flats entering the market, coupled with continued demand from urgent homebuyers, unsuccessful Build-To-Order applicants, and budget-conscious families.
Notably, new launches such as The Orie, Bagnall Haus, Parktown Residence, and ELTA have attracted strong market interest. PropNex anticipates a positive demand for developers’ sales in fiscal year 2025, with an impressive lineup of projects. Additionally, a promising economic outlook and lower mortgage rates are expected to further boost market confidence, creating opportunities for both homebuyers and investors, as noted by PropNex’s CEO Ismail Gafoor.