PropNex reports lower FY2024 earnings but expects significant pick-up for 1HFY2025
Singapore’s most extensive realty agency PropNex has reported incomes of $21.9 million for its 2HFY2024 ended Dec 31, 2024, down 14.9% y-o-y. This brings its full-year incomes to $40.9 million, 14.4% lesser compared to the preceding FY2023.
Still, to note its 25th anniversary, PropNex plans to pay an unique returns of 2.5 cents per share, on top of a final reward of 3 cents. This will certainly bring its total reward payment for FY2024 to a record of 7.75 cents, representing a payout ratio of 140.1% and a turnout of 8.2%.
“Demand will be fuelled by the relentless price gap between new and non-landed resale properties, a choice for bigger, move-in-ready homes and the effect of fewer brand-new supply finishes,” states PropNex.
The firm describes that the monetary effects of these sales will only be booked three to 4 months later on, recommending a significant pick-up when it reports its current 1HFY2025 numbers.
The private resale market, on the other hand, is set to remain engaged, with deal volumes prepared for to range between 14,000 and 15,000 units.
Ismail notes that newly-launched projects including The Orie, Bagnall Haus, Parktown Residence and ELTA have produced strong market interest.
This is underpinned by a determined 13,000 new unit launches (including ECs)– almost double the supply logged in 2024.
“Less five-year minimum occupation period apartments going into the market, paired with sustained need from urgent buyers, unsuccessful Build-To-Order applicants, and budget-conscious family members, will certainly continue to support this sector,” says PropNex.
HDB resale, the other crucial market, will likely see price growth of 5% to 7%, with volumes reaching 29,000 to 30,000 units.
“We expect a favorable need for developers’ sales in 2025, including an engaging line-up of projects. Additionally, a positive financial outlook and lesser home mortgage rates can additionally bolster industry confidence, developing possibilities for both property buyers and capitalists,” he adds.
“In view of this, and assumptions of a good property market overview in 2025, the group is certain of a solid productivity in FY2025, barring unexpected events,” states PropNex.
Revenue dipped 6.6% in FY2024 over FY2023, because of the “relatively subdued real estate market”.
In spite of the reduced incomes for the year, PropNex has actually noticed a pick up in activities in the final quarter of 2024, led by a surge in new exclusive home units which it assisted to offer.
