PropNex, Singapore’s largest real estate agency, has released its financial report for the second half of its fiscal year 2024, which ended on December 31, 2024. The company’s earnings for this period were $21.9 million, a decrease of 14.9% compared to the previous year. This brings its full-year earnings to $40.9 million, a 14.4% decrease from the preceding fiscal year.
The decline in earnings can be attributed to the relatively subdued property market, which resulted in a 6.6% decrease in revenue compared to the previous year. In spite of this, as part of its 25th anniversary celebrations, PropNex has announced a special dividend of 2.5 cents per share and a final dividend of 3 cents, bringing the total dividend payout for fiscal year 2024 to a record 7.75 cents. This represents a payout ratio of 140.1% and a yield of 8.2%.
Despite the decline in earnings for the year, PropNex has observed an increase in activity in the last quarter of 2024, driven by a surge in new private home units which the company helped to sell. The financial impacts of these sales will only be reflected in the company’s current fiscal year 1H2025 numbers, which suggests a significant pick-up in performance.
PropNex is confident of a strong performance in fiscal year 2025, given the favorable outlook of the property market and an estimated 13,000 new unit launches (including ECs) – nearly double the supply recorded in fiscal year 2024. The private resale market is also expected to remain active, with transaction volumes ranging between 14,000 and 15,000 units. This is due to the persistent price gap between new and non-landed resale properties, the preference for larger, move-in-ready homes, and the impact of fewer new supply completions.
The HDB resale market is also set to see price growth of 5% to 7%, with transaction volumes reaching 29,000 to 30,000 units. This is driven by the shortage of five-year minimum occupation period flats entering the market, along with sustained demand from urgent homebuyers, unsuccessful Build-To-Order applicants, and budget-conscious families.
PropNex CEO Ismail observes strong market interest in newly-launched projects such as The Orie, Bagnall Haus, Parktown Residence, and ELTA. He anticipates a positive demand for developers’ sales in 2025, with a compelling line-up of projects. The positive economic outlook and lower mortgage rates could also further strengthen market confidence, creating opportunities for both homebuyers and investors.
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