PropNex reports lower FY2024 earnings but expects significant pick-up for 1HFY2025
Singapore’s biggest realty firm PropNex has actually reported revenues of $21.9 million for its 2HFY2024 ended Dec 31, 2024, down 14.9% y-o-y. This carries its full-year profits to $40.9 million, 14.4% lesser compared to the preceding FY2023.
“In view of this, and assumptions of a good real property market overview in 2025, the group is certain of a strong performance in FY2025, barring unforeseen events,” specifies PropNex.
Still, to note its 25th anniversary, PropNex plans to pay a special dividend of 2.5 cents per share, in addition to a final returns of 3 cents. This will carry its total reward payment for FY2024 to a document of 7.75 cents, representing a payment ratio of 140.1% and a yield of 8.2%.
Ismail notes that newly-launched projects such as The Orie, Bagnall Haus, Parktown Residence and ELTA have produced strong market interest.
“We expect a positive need for programmers’ sales in 2025, including a compelling line-up of jobs. Additionally, a favorable financial outlook and lesser home loan prices could further strengthen industry assurance, producing chances for both property buyers and capitalists,” he includes.
“Less five-year minimum occupation duration flats going into the market, combined with continual need from urgent property buyers, unsuccessful Build-To-Order applicants, and budget-conscious family members, will remain to support this segment,” says PropNex.
This is underpinned by an approximated 13,000 new unit launches (including ECs)– almost double the supply recorded in 2024.
The private resale market, meanwhile, is readied to continue to be active, with purchase volumes expected to range between 14,000 and 15,000 units.
The business clarifies that the financial results of these sales will only be booked three to four months later on, recommending a considerable pick-up when it reports its current 1HFY2025 numbers.
Regardless of the lower profits for the year, PropNex has actually noticed a pick up in activities in the remaining quarter of 2024, led by a surge in brand-new exclusive home units which it assisted to sell.
“Demand will be sustained by the persistent cost gap between brand-new and non-landed resale properties, a preference for larger, move-in-ready homes and the effect of lesser new supply completions,” states PropNex.
Revenue dipped 6.6% in FY2024 over FY2023, because of the “fairly subdued property market”.
HDB resale, the various other crucial market, will likely see price growth of 5% to 7%, with volumes getting to 29,000 to 30,000 units.
