PropNex, the largest real estate agency in Singapore, has announced a decline in earnings for its 2HFY2024 which ended on December 31, 2024. The company’s earnings reached $21.9 million, a decrease of 14.9% compared to the previous year. This brings the total earnings for the year to $40.9 million, a decrease of 14.4% from the preceding FY2023.
The decline in earnings is attributed to the “relatively subdued property market”, which led to a 6.6% drop in revenue for FY2024 compared to FY2023. However, despite this, PropNex plans to celebrate its 25th anniversary by paying 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 of 7.75 cents, with a payout ratio of 140.1% and a yield of 8.2%.
Although the company’s earnings were lower for the year, there was a pick up in activities in the last quarter of 2024, driven by a surge in sales of new private home units, which PropNex played a significant role in. The company expects to see the financial impact of these sales in its current 1HFY2025 numbers, which suggests a significant improvement in the company’s performance.
PropNex remains optimistic about its future performance, considering the favourable property market outlook in 2025 and the estimated launch of 13,000 new units (including ECs), which is almost double the supply in 2024. The private resale market is also expected to remain active, with transaction volumes projected to range between 14,000 and 15,000 units. The company attributes this demand to the price gap between new and non-landed resale properties, the demand for larger, move-in-ready homes, and the impact of fewer new supply completions.
In addition to the private market, HDB resale market is also expected to see a price growth of 5% to 7%, with estimated volumes of 29,000 to 30,000 units. PropNex predicts that this segment will continue to be supported by the decreasing number of five-year minimum occupation period flats entering the market, as well as the demand from urgent homebuyers, unsuccessful Build-To-Order applicants, and budget-conscious families.
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According to PropNex, projects such as The Orie, Bagnall Haus, Parktown Residence, and ELTA have generated strong interest in the market. The company expects a positive demand for developers’ sales in 2025, with an attractive line-up of projects. Moreover, a positive economic outlook and lower mortgage rates could further boost market confidence, providing opportunities for both homebuyers and investors.