PropNex reports lower FY2024 earnings but expects significant pick-up for 1HFY2025
The private resale market, meanwhile, is set to remain engaged, with transaction quantities prepared for to range between 14,000 and 15,000 units.
HDB resale, the other key market, will likely see price growth of 5% to 7%, with volumes getting to 29,000 to 30,000 units.
“Demand is going to be fuelled by the persistent cost gap between brand-new and non-landed resale properties, a preference for larger, move-in-ready homes and the effect of lesser brand-new supply completions,” states PropNex.
Union Square Residences showflat location
“Less five-year minimum occupation period flats getting in the marketplace, combined with sustained demand from urgent buyers, unsuccessful Build-To-Order applicants, and budget-conscious family members, will certainly continue to support this sector,” claims PropNex.
Earnings dipped 6.6% in FY2024 over FY2023, as a result of the “reasonably subdued property market”.
The firm describes that the financial impacts of these sales will just be booked 3 to 4 months later on, suggesting a significant pick-up when it shows its existing 1HFY2025 numbers.
Despite the reduced profits for the year, PropNex has monitored a pick up in events in the last quarter of 2024, led by a surge in new exclusive home units that it helped to offer.
Ismail observes that newly-launched projects like The Orie, Bagnall Haus, Parktown Residence and ELTA have generated strong market attraction.
This is underpinned by an estimated 13,000 new unit launches (including ECs)– almost double the quantity logged in 2024.
Singapore’s most extensive realty company PropNex has reported revenues of $21.9 million for its 2HFY2024 ended Dec 31, 2024, down 14.9% y-o-y. This brings its full-year earnings to $40.9 million, 14.4% lower compared to the preceding FY2023.
“In view of this, and expectations of a good real property market outlook in 2025, the group is certain of a solid productivity in FY2025, disallowing unexpected events,” mentions PropNex.
“We prepare for a favorable demand for designers’ sales in 2025, including an engaging line-up of projects. Additionally, a positive financial outlook and lesser home loan prices could additionally boost market assurance, developing opportunities for both homebuyers and investors,” he adds.
Still, to note its 25th anniversary, PropNex plans to pay a special returns of 2.5 cents per share, on top of a final returns of 3 cents. This will deliver its total returns payout for FY2024 to a record of 7.75 cents, representing a payout ratio of 140.1% and a turnout of 8.2%.
