PropNex reports lower FY2024 earnings but expects significant pick-up for 1HFY2025
Singapore’s biggest real estate company PropNex has reported profits of $21.9 million for its 2HFY2024 ended Dec 31, 2024, down 14.9% y-o-y. This takes its full-year revenues to $40.9 million, 14.4% lower compared to the preceding FY2023.
“Less five-year minimum occupation period flats getting in the marketplace, coupled with sustained need from urgent homebuyers, not successful Build-To-Order applicants, and budget-conscious families, will certainly remain to sustain this segment,” states PropNex.
“In view of this, and assumptions of a good property market outlook in 2025, the group is certain of a solid efficiency in FY2025, preventing unexpected events,” specifies PropNex.
“Demand is going to be fuelled by the persistent rate gap between brand-new and non-landed resale properties, a preference for bigger, move-in-ready homes and the effect of lesser brand-new supply completions,” states PropNex.
Revenue plunged 6.6% in FY2024 over FY2023, because of the “reasonably controlled property market”.
HDB resale, the other crucial market, will likely see price growth of 5% to 7%, with quantities getting to 29,000 to 30,000 units.
“We prepare for a favorable demand for designers’ sales in 2025, including an engaging line-up of projects. Additionally, a positive economic outlook and lower home mortgage prices might better reinforce market confidence, creating possibilities for both buyers and capitalists,” he incorporates.
The private resale market, on the other hand, is set to remain engaged, with transaction volumes prepared for to range in between 14,000 and 15,000 units.
Still, to mark its 25th anniversary, PropNex plans to pay an unique reward of 2.5 cents per share, in addition to a final reward of 3 cents. This will carry its total returns payment for FY2024 to a record of 7.75 cents, representing a payout ratio of 140.1% and a turnout of 8.2%.
This is underpinned by an approximated 13,000 new unit release (including ECs)– nearly double the supply registered in 2024.
Ismail observes that newly-launched ventures including The Orie, Bagnall Haus, Parktown Residence and ELTA have generated solid market attention.
In spite of the reduced revenues for the year, PropNex has noticed a pick up in events in the final quarter of 2024, led by a surge in new exclusive home units that it helped to sell.
The firm explains that the economic effects of these sales will just be booked 3 to four months later, suggesting a considerable pick-up when it declares its current 1HFY2025 numbers.
