PropNex reports lower FY2024 earnings but expects significant pick-up for 1HFY2025
Profits dipped 6.6% in FY2024 over FY2023, as a result of the “reasonably subdued real estate market”.
The private resale market, meanwhile, is set to continue to be engaged, with deal quantities expected to range in between 14,000 and 15,000 units.
HDB resale, the other vital market, will likely see price growth of 5% to 7%, with quantities reaching 29,000 to 30,000 units.
Despite the lower profits for the year, PropNex has actually observed a pick up in events in the remaining quarter of 2024, led by a surge in new exclusive home units which it assisted to market.
“Demand will be sustained by the persistent rate gap between new and non-landed resale properties, a preference for larger, move-in-ready homes and the impact of lesser new supply finishes,” claims PropNex.
“In view of this, and assumptions of a great property market overview in 2025, the group is positive of a strong productivity in FY2025, barring unexpected events,” states PropNex.
Ismail notes that newly-launched ventures such as The Orie, Bagnall Haus, Parktown Residence and ELTA have generated solid market attention.
“We prepare for a favorable need for designers’ sales in 2025, including a compelling line-up of jobs. Additionally, a positive economic outlook and lower home loan rates might further bolster industry assurance, creating opportunities for both homebuyers and financiers,” he includes.
Still, to note its 25th anniversary, PropNex intends to pay a special returns of 2.5 cents per share, on top of a final dividend of 3 cents. This will certainly deliver its total returns payment for FY2024 to a record of 7.75 cents, representing a payout ratio of 140.1% and a turnout of 8.2%.
The business clarifies that the monetary impacts of these sales will just be booked three to four months later, recommending a considerable pick-up when it shows its existing 1HFY2025 numbers.
This is underpinned by an estimated 13,000 new unit launches (including ECs)– nearly double the quantity logged in 2024.
Singapore’s most extensive property agency PropNex has disclosed earnings of $21.9 million for its 2HFY2024 ended Dec 31, 2024, lower 14.9% y-o-y. This brings its full-year revenues to $40.9 million, 14.4% lower compared to the preceding FY2023.
“Less five-year minimum occupation period apartments getting in the marketplace, coupled with sustained need from immediate property buyers, not successful Build-To-Order applicants, and budget-conscious households, will continue to support this section,” states PropNex.
