Singapore’s leading real estate agency PropNex has announced its financial results for the second half of the financial year ending on December 31, 2024. Despite a decrease of 14.9% year-on-year, the company still recorded earnings of $21.9 million. This brings the total earnings for the full year to $40.9 million, a 14.4% decline compared to the previous financial year.
The decrease in revenue was also reflected, with a 6.6% dip in FY2024 compared to FY2023. This was due to the slower property market during this period.
However, in celebration of its 25th anniversary, PropNex has declared a special dividend of 2.5 cents per share in addition to a final dividend of 3 cents. This marks a record dividend payout of 7.75 cents for FY2024, with a payout ratio of 140.1% and a yield of 8.2%.
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Although there was a decline in earnings for the year, PropNex has noted an increase in activities in the last quarter of 2024, driven by a surge in sales of new private home units, which the company assisted in selling.
In related news, DBS has upgraded PropNex and APAC Realty to a “buy” status due to their strong pipeline of new launches planned for 2025. This is expected to further boost the company’s performance for the current financial year.
PropNex attributes the delay in financial effects of these sales to the reporting of its current first half of the financial year, stating that there will likely be a significant increase in numbers during this time.
Looking ahead, the company remains confident in its performance for FY2025, citing a favorable outlook in the property market. This is supported by an estimated 13,000 new unit launches (including ECs) for the year, almost double the supply recorded in 2024.
The private resale market is also expected to remain active, with transaction volumes projected to range between 14,000 to 15,000 units. This is driven by the price gap between new and non-landed resale properties, as well as the preference for larger, move-in-ready homes and fewer new supply completions.
As for the HDB resale market, PropNex predicts a 5% to 7% price growth and a volume of 29,000 to 30,000 units. This is due to the limited number of five-year minimum occupation period flats entering the market, combined with sustained demand from urgent homebuyers, unsuccessful Build-To-Order applicants, and budget-conscious families.
CEO of PropNex, Ismail Gafoor, also highlights the strong market interest generated by newly-launched projects such as The Orie, Bagnall Haus, Parktown Residence, and ELTA. He predicts a positive demand for developers’ sales in 2025, with a promising line-up of projects. The positive economic outlook and lower mortgage rates are also expected to further boost market confidence, providing opportunities for homebuyers and investors alike.