PropNex, Singapore’s largest real estate agency, recently announced its earnings for the second half of FY2024, which ended on December 31, 2024. The company reported a decrease of 14.9% compared to the previous year, amounting to $21.9 million. This brings the full-year earnings to $40.9 million, a decline of 14.4% from the preceding FY2023.
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The decline in earnings was mainly due to the relatively subdued property market, resulting in a dip in revenue of 6.6% for FY2024 compared to FY2023. Despite this, in celebration of its 25th anniversary, PropNex has announced a special dividend of 2.5 cents per share, in addition to the final dividend of 3 cents per share. This sets a record dividend payout of 7.75 cents for FY2024, with a payout ratio of 140.1% and a yield of 8.2%.
Although the company’s earnings have decreased for the year, there has been an increase in activity in the last quarter of 2024, driven by a surge in new private home units sold with the help of PropNex. This increase in sales will have a significant impact on the company’s financials, which will be reflected in its current 1HFY2025 numbers, thus suggesting a positive outlook for the company.
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PropNex expects a strong performance in FY2025, given the favourable property market outlook and an estimated launch of 13,000 new units (including ECs), almost double the supply in 2024. The private resale market is also expected to remain active, with an estimated transaction volume of 14,000 to 15,000 units. This demand is driven by the price gap between new and non-landed resale properties, the preference for larger, ready-to-move-in homes, and a decrease in new supply completions.
In terms of HDB resale, PropNex predicts a price growth of 5% to 7% with a volume of 29,000 to 30,000 units. The limited supply of five-year minimum occupation period flats in the market, along with strong demand from urgent home buyers, unsuccessful Build-To-Order applicants, and budget-conscious families, is expected to drive the market.
The company also notes that recently launched projects such as The Orie, Bagnall Haus, Parktown Residence, and ELTA have generated significant interest in the market. With a positive economic outlook and lower mortgage rates, PropNex anticipates a positive demand for developer sales in 2025, offering a compelling line-up of projects. This, coupled with market confidence, could create opportunities for both homebuyers and investors.