Propnex Reports Lower Fy2024 Earnings Expects Significant Pick 1Hfy2025
PropNex, Singapore’s largest real estate agency, has announced its financial results for the second half of fiscal year 2024, which ended on December 31, 2024. The company reported earnings of $21.9 million, a 14.9% decrease from the previous year. This brings PropNex’s total earnings for the full year to $40.9 million, a 14.4% decrease from the preceding year.
The decline in earnings can be attributed to a 6.6% decrease in revenue from the previous year, due to the “relatively subdued property market.” Despite this, in celebration of its 25th anniversary, PropNex plans to pay 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 fiscal year 2024 to a record of 7.75 cents, with a payout ratio of 140.1% and a yield of 8.2%.
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Despite the lower earnings, PropNex has seen an increase in market activity in the last quarter of 2024, driven by a surge in new private home units that the company has helped to sell. The financial impact of these sales will only be realized three to four months later, indicating a significant increase in revenue when the company reports its first half fiscal year 2025 numbers.
PropNex is confident of a strong performance in fiscal year 2025, citing a favorable property market outlook and an estimated 13,000 new unit launches (including executive condominiums) – almost double the supply recorded in fiscal year 2024. The private resale market is also expected to remain active, with transaction volumes projected to range between 14,000 and 15,000 units. This demand is fueled by a persistent price gap between new and non-landed resale properties, a preference for larger, move-in-ready homes, and a decrease in new supply completions.
In the HDB resale market, PropNex predicts a 5% to 7% price growth and transaction volumes reaching 29,000 to 30,000 units. The company believes that fewer five-year minimum occupation period flats entering the market, combined with continued demand from urgent homebuyers, unsuccessful Build-To-Order applicants, and budget-conscious families, will support this segment.
PropNex notes that newly launched projects such as The Orie, Bagnall Haus, Parktown Residence, and ELTA have generated strong market interest. The company expects a positive demand for developers’ sales in fiscal year 2025, with a promising lineup of projects. A positive economic outlook and lower mortgage rates may further boost market confidence, creating opportunities for both homebuyers and investors, according to PropNex CEO Ismail Gafoor.