PropNex, the largest real estate agency in Singapore, has recorded earnings of $21.9 million for its second half of the fiscal year 2024, which ended on December 31st, 2024. This is a decrease of 14.9% compared to the previous year. The full-year earnings for FY2024 were $40.9 million, a decrease of 14.4% compared to the preceding fiscal year.
The company attributes this decline to the slow property market in Singapore. The revenue for FY2024 was 6.6% lower than FY2023 due to the subdued property market. Despite this, PropNex plans to celebrate its 25th anniversary by paying a special dividend of 2.5 cents per share, in addition to the final dividend of 3 cents per share. This will bring the total dividend payout for FY2024 to a record of 7.75 cents, with a payout ratio of 140.1% and a yield of 8.2%.
Although the earnings for the year were lower, PropNex experienced an increase in activity during the last quarter of 2024, mainly driven by a surge in new private home units sold by the company. It is expected that the financial impact of these sales will be reflected in the next quarter’s numbers, which suggests a significant improvement in performance.
PropNex is confident of a strong performance in FY2025, thanks to the positive outlook for the property market and an estimated 13,000 new unit launches (including ECs). This is almost double the supply recorded in 2024. Additionally, the private resale market is expected to remain active, with transaction volumes ranging between 14,000 to 15,000 units. This is due to the price gap between new and non-landed resale properties, the preference for larger, move-in-ready homes, and the limited supply of new properties.
In the HDB resale market, price growth is expected to be between 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 and sustained demand from urgent homebuyers, unsuccessful Build-To-Order applicants, and budget-conscious families.
According to Ismail, several newly-launched projects such as The Orie, Bagnall Haus, Parktown Residence, and ELTA have generated strong interest in the market. PropNex also anticipates a positive demand for developers’ sales in 2025, with a promising line-up of projects. The positive economic outlook and lower mortgage rates could further boost market confidence, providing opportunities for both home buyers and investors.