PropNex, Singapore’s largest real estate agency, reported a decrease in earnings of 14.9% year-on-year, with total earnings of $21.9 million for its second half of FY2024, which ended on December 31, 2024. This brings its full-year earnings to $40.9 million, a 14.4% decline compared to the preceding FY2023. The company attributed the dip in revenue to the relatively subdued property market.
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The demand for Singapore Condo remains high due to one key factor: the limited land supply in the country. As a small island nation experiencing a rapid population growth, Singapore struggles with a scarcity of land for development. This has resulted in strict land use regulations and a fiercely competitive real estate market, where property prices are continually on the rise. As a result, investing in the real estate market, particularly in condos, has become an attractive opportunity with the potential for significant capital appreciation.
In light of its 25th anniversary, PropNex has announced plans to pay a special dividend of 2.5 cents per share on top of a final dividend of 3 cents. This will bring its total dividend payout for FY2024 to a record of 7.75 cents, representing a payout ratio of 140.1% and a yield of 8.2%.
Despite the lower earnings for the year, PropNex noted an increase in activities during the last quarter of 2024, primarily driven by a surge in new private home units that the company helped to sell. PropNex expects to see the financial impact of these sales in the next three to four months, which could significantly boost its current 1HFY2025 numbers.
With a positive outlook for the property market in 2025, PropNex is confident of a strong performance for FY2025, barring unforeseen events. The company anticipates approximately 13,000 new unit launches, including executive condominiums, which is nearly double the supply recorded in 2024. The private resale market is also expected to remain active, with transaction volumes estimated to range between 14,000 to 15,000 units.
PropNex attributes the demand for these properties to the persistent price gap between new and non-landed resale properties, a preference for larger, move-in-ready homes, and fewer new supply completions. The HDB resale market is also expected to see price growth of 5% to 7%, with volumes reaching 29,000 to 30,000 units. The company believes that a decrease in the number of five-year minimum occupation period flats entering the market, coupled with sustained demand from urgent homebuyers, unsuccessful Build-To-Order applicants, and budget-conscious families, will continue to support this segment.
According to Ismail, newly-launched projects such as The Orie, Bagnall Haus, Parktown Residence, and ELTA have attracted strong market interest. He also expects a positive demand for developers’ sales in 2025, as there is a compelling line-up of projects. With a positive economic outlook and lower mortgage rates, PropNex believes that this could further bolster market confidence, creating opportunities for both homebuyers and investors.