PropNex, Singapore’s largest real estate agency, recorded a net profit of $21.9 million for the second half of its financial year ended December 31, 2024, a 14.9% decline from the previous year. This brings its full-year earnings to $40.9 million, a 14.4% decrease from the preceding financial year.
The company attributes the dip in revenue, which fell by 6.6% compared to FY2023, to the “relatively subdued property market”. However, in celebration of its 25th anniversary, PropNex plans to distribute a special dividend of 2.5 cents per share, in addition to the final dividend of 3 cents per share. This sets a record dividend payout of 7.75 cents for FY2024, with a payout ratio of 140.1% and a yield of 8.2%.
Despite the decline in earnings, PropNex has observed an increase in activity in the final quarter of 2024, driven by a surge in sales of new private homes, which the company helped to sell. This is evident in its recent upgrade to ‘buy’ by DBS, citing a strong pipeline of new launches in 2025.
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In its statement, PropNex explains that the financial impact of these sales will only be reflected in its current financial year, suggesting a significant improvement in its 1HFY2025 results. The company is confident of a strong performance in FY2025, given the expected favorable outlook in the property market, unless faced with any unforeseen events.
This positive outlook is supported by an estimated 13,000 new unit launches (including ECs), almost double the supply recorded in 2024. The private resale market is also expected to remain active, with transaction volumes projected to range between 14,000 and 15,000 units. The company attributes this to the persistent price gap between new and non-landed resale properties, the preference for larger, move-in-ready homes, and the effect of fewer new supply completions.
PropNex further predicts that the HDB resale market will see price growth of 5% to 7%, with transaction volumes reaching 29,000 to 30,000 units. This is due to fewer 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.
According to CEO Ismail Gafoor, newly-launched projects such as The Orie, Bagnall Haus, Parktown Residence and ELTA have generated strong market interest. He expects a positive demand for developers’ sales in 2025, with a strong line-up of projects. He also anticipates a boost to market confidence, thanks to a positive economic outlook and lower mortgage rates, providing opportunities for both homebuyers and investors.