Singapore’s leading real estate agency, 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 represents a decline of 14.9% from the previous year. The company’s full-year earnings also declined by 14.4% to reach $40.9 million compared to the preceding financial year, FY2023.
The decrease in revenue by 6.6% in FY2024, as compared to FY2023, is attributed to the subdued property market. Despite this, in celebration of 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 bring the total dividend payout for FY2024 to a record high of 7.75 cents, with a payout ratio of 140.1% and a yield of 8.2%.
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Despite the dip in earnings, PropNex has noticed an increase in activity in the last quarter of 2024, primarily driven by a surge in new private home units that the company has helped to sell. The financial impact of these sales will only be reflected in the company’s current financial year 1HFY2025, which suggests a significant rise in profits when the numbers are reported.
The company is optimistic about its performance in FY2025, given the favorable outlook of the property market. This is further supported by the estimated launch of 13,000 new units (including Executive Condominiums), almost double the supply in FY2024. The private resale market is also expected to remain lively, with transaction volumes projected to range between 14,000 and 15,000 units.
Demand in this market will be driven by the persistent price difference between new and non-landed resale properties, as well as the preference for larger, move-in-ready homes. The impact of fewer new supply completions will also contribute to the demand.
In the HDB resale market, PropNex forecasts a price growth of 5% to 7%, with volumes reaching 29,000 to 30,000 units. The company believes that the segment will continue to be supported by a decrease in the number of five-year minimum occupation period flats entering the market, coupled with strong demand from urgent homebuyers, unsuccessful Build-To-Order applicants, and families on a budget.
Ismail Gafoor, the CEO of PropNex, notes that newly launched projects such as The Orie, Bagnall Haus, Parktown Residence, and ELTA, have received positive market interest. He expects a strong demand and sales for developers in 2025, with a compelling line-up of projects. Furthermore, the positive economic outlook and lower mortgage rates could boost market confidence, creating opportunities for both homebuyers and investors.