PropNex reports lower FY2024 earnings but expects significant pick-up for 1HFY2025
Singapore’s biggest realty agency PropNex has disclosed incomes of $21.9 million for its 2HFY2024 ended Dec 31, 2024, lower 14.9% y-o-y. This brings its full-year incomes to $40.9 million, 14.4% lower compared to the preceding FY2023.
“We anticipate a favorable need for designers’ sales in 2025, featuring a compelling line-up of projects. Additionally, a favorable economic outlook and lesser home loan rates can further reinforce market confidence, developing chances for both homebuyers and financiers,” he incorporates.
The business explains that the economic impacts of these sales will only be reserved 3 to 4 months later, recommending a considerable pick-up when it declares its existing 1HFY2025 numbers.
“In view of this, and assumptions of a favourable real estate market outlook in 2025, the team is positive of a strong performance in FY2025, preventing unexpected events,” states PropNex.
“Fewer five-year minimum occupation period flats getting in the market, paired with sustained need from immediate buyers, not successful Build-To-Order applicants, and budget-conscious family members, will certainly continue to sustain this sector,” says PropNex.
HDB resale, the other key market, will likely see price growth of 5% to 7%, with volumes reaching 29,000 to 30,000 units.
Income plunged 6.6% in FY2024 over FY2023, because of the “reasonably subdued property market”.
This is underpinned by an approximated 13,000 new unit launches (including ECs)– nearly double the supply recorded in 2024.
Ismail observes that newly-launched projects such as The Orie, Bagnall Haus, Parktown Residence and ELTA have actually generated solid market attraction.
Nonetheless, to mark its 25th anniversary, PropNex intends to pay a special reward of 2.5 cents per share, in addition to a final returns of 3 cents. This will certainly carry its total dividend payout for FY2024 to a record of 7.75 cents, representing a payout ratio of 140.1% and a turnout of 8.2%.
“Demand is going to be fuelled by the relentless price gap between brand-new and non-landed resale properties, a choice for bigger, move-in-ready homes and the impact of fewer new supply finishes,” states PropNex.
The private resale market, on the other hand, is readied to remain active, with transaction volumes expected to range in between 14,000 and 15,000 units.
Regardless of the reduced earnings for the year, PropNex has observed a pick up in activities in the remaining quarter of 2024, led by a surge in brand-new private home units which it assisted to offer.
