PropNex, Singapore’s largest real estate agency, has announced a profit of $21.9 million for the second half of its financial year, which ended on December 31, 2024. This is a 14.9% decrease from the previous year. Overall, its full-year earnings for FY2024 were $40.9 million, a 14.4% drop compared to FY2023.
The company’s revenue also experienced a decline of 6.6% in FY2024 as compared to the previous year, largely due to the soft property market. However, in celebration of its 25th anniversary, PropNex plans to pay 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, representing a payout ratio of 140.1% and a yield of 8.2%.
Despite the lower earnings for the year, PropNex has seen a rise in activities in the last quarter of 2024, led by a surge in the sale of new private home units with the agency’s assistance. The company anticipates significant revenue from these sales to be reflected in its current 1HFY2025 financial results, which will be reported three to four months later.
PropNex is confident of a strong performance in FY2025, attributing it to the positive outlook of the property market and an estimated 13,000 new unit launches (including Executive Condominiums), 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.
According to PropNex, the demand for private resale properties will be driven by the persistent price gap between new and non-landed resale properties, a preference for larger and ready-to-move-in homes, and the limited supply of new properties. As for HDB resale properties, the company estimates a price growth of 5% to 7% and expects transaction volumes to reach 29,000 to 30,000 units. PropNex believes that the HDB resale market will continue to be supported by the reduced number of five-year minimum occupation period flats entering the market, along with sustained demand from first-time buyers, unsuccessful Build-To-Order applicants, and budget-conscious families.
PropNex’s Senior Executive Director and Head of Project Marketing and Consultancy, Ismail Gafoor, has observed strong market interest in newly-launched projects such as The Orie, Bagnall Haus, Parktown Residence, and ELTA. He is optimistic about the demand for developers’ sales in 2025, with a promising pipeline of projects lined up. With a positive economic outlook and lower mortgage rates, PropNex believes that there will be increased market confidence, creating opportunities for both homebuyers and investors.