Propnex Reports Lower Fy2024 Earnings Expects Significant Pick 1Hfy2025
Singapore’s largest real estate agency PropNex reported a decline in earnings for its 2HFY2024 ended Dec 31, 2024, with a total of $21.9 million, representing a 14.9% decrease compared to the previous year. Despite this, the company recorded a full-year earnings of $40.9 million, a 14.4% decrease from FY2023.
The decrease in revenue by 6.6% in FY2024 over FY2023 is attributed to the subdued property market. However, PropNex plans to commemorate its 25th anniversary by paying 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 FY2024 to a record of 7.75 cents, resulting in a payout ratio of 140.1% and a yield of 8.2%.
Despite the decline in earnings, PropNex saw an increase in activities in the last quarter of 2024, mainly driven by a surge in new private home units which the company assisted in selling. The company expects a significant increase in financial effects from these sales in the next three to four months, suggesting a promising outlook for its current 1HFY2025 numbers.
PropNex expresses confidence in a strong performance for FY2025 due to expectations of a favorable property market outlook, barring any unforeseen events. This is supported by an estimated 13,000 new unit launches (including ECs) in 2025, almost double the supply recorded in 2024.
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The private resale market is also expected to remain active, with an anticipated transaction volume of 14,000 to 15,000 units. The demand for larger, move-in-ready homes, coupled with a persistent price gap between new and non-landed resale properties, will likely fuel this demand, along with fewer new supply completions.
As for HDB resale, PropNex predicts a price growth of 5% to 7%, with a transaction volume of 29,000 to 30,000 units. The company attributes this to the decrease in five-year minimum occupation period flats entering the market, as well as a sustained demand from urgent homebuyers, unsuccessful Build-To-Order applicants, and budget-conscious families.
The company also notes that newly-launched projects such as The Orie, Bagnall Haus, Parktown Residence, and ELTA have received considerable market interest. According to PropNex, developers’ sales are expected to be positive in 2025, featuring an attractive line-up of projects. In addition, a positive economic outlook and lower mortgage rates may further boost market confidence, creating opportunities for both homebuyers and investors.