Singapore’s leading real estate agency, PropNex, has reported a decline in earnings of 14.9% year-on-year, recording $21.9 million for its second half of the financial year 2024 that ended on Dec 31, 2024. This brings its full-year earnings to $40.9 million, a decrease of 14.4% compared to the previous financial year, FY2023.
The dip in revenue of 6.6% in FY2024 compared to FY2023 is attributed to the relatively subdued property market. Despite this, to commemorate its 25th anniversary, PropNex intends to pay a special dividend of 2.5 cents per share, on top of the final dividend of 3 cents. This will result in the highest dividend payout for the financial year ending 2024 of 7.75 cents, representing a payout ratio of 140.1% and a yield of 8.2%.
Even though the company recorded lower earnings in the year, it has noted an increase in activity in the last quarter of 2024, led by a surge in new private home units which it facilitated the sale of.
In light of this, and with expectations of a favorable property market outlook in 2025, PropNex is confident of a strong performance in the financial year 2025, unless there are any unforeseen events. This optimism is supported by an estimated 13,000 new unit launches (including ECs) in the upcoming year, almost double the supply recorded in 2024.
The private resale market is also expected to remain active, with transaction volumes anticipated to range between 14,000 and 15,000 units. PropNex attributes this to the persistent price gap between new and non-landed resale properties, the preference for larger, move-in-ready homes, and the impact of fewer new supply completions.
The HDB resale market, another key market for PropNex, is forecasted to experience price growth of 5% to 7%, with volumes expected to reach 29,000 to 30,000 units. According to PropNex, this is due to the limited 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.
The company’s Executive Chairman and CEO, Mr. Ismail Gafoor, is confident about the future, noting that newly-launched projects such as The Orie, Bagnall Haus, Parktown Residence, and ELTA have generated significant market interest. He further adds that there will be a positive demand for developers’ sales in 2025, with a strong line-up of projects. The positive economic outlook and lower mortgage rates could also boost market confidence, creating opportunities for both homebuyers and investors.