PropNex reports lower FY2024 earnings but expects significant pick-up for 1HFY2025
Singapore’s largest property company PropNex has actually reported profits of $21.9 million for its 2HFY2024 ended Dec 31, 2024, down 14.9% y-o-y. This takes its full-year incomes to $40.9 million, 14.4% lower compared to the preceding FY2023.
The private resale market, meanwhile, is readied to continue to be active, with purchase volumes anticipated to range between 14,000 and 15,000 units.
Earnings dipped 6.6% in FY2024 over FY2023, as a result of the “reasonably subdued property market”.
“Fewer five-year minimum occupation period flats getting in the marketplace, paired with sustained need from immediate homebuyers, unsuccessful Build-To-Order applicants, and budget-conscious households, will continue to support this section,” states PropNex.
Ismail notes that newly-launched projects including The Orie, Bagnall Haus, Parktown Residence and ELTA have actually created strong market attraction.
“We prepare for a positive demand for developers’ sales in 2025, including a compelling line-up of projects. Additionally, a positive economic outlook and lower home mortgage rates could additionally reinforce market confidence, creating chances for both homebuyers and investors,” he incorporates.
HDB resale, the other key market, will likely see price growth of 5% to 7%, with quantities getting to 29,000 to 30,000 units.
The company explains that the financial impacts of these sales will just be booked three to 4 months later, suggesting a significant pick-up when it shows its current 1HFY2025 numbers.
“In view of this, and expectations of a great real property market outlook in 2025, the team is confident of a solid efficiency in FY2025, barring unexpected events,” mentions PropNex.
This is underpinned by an estimated 13,000 new unit launches (including ECs)– nearly double the supply logged in 2024.
“Demand will be sustained by the consistent rate gap between new and non-landed resale properties, a preference for larger, move-in-ready homes and the impact of fewer brand-new supply finishes,” claims PropNex.
Despite the reduced revenues for the year, PropNex has actually noticed a pick up in events in the last quarter of 2024, led by a rise in new private home units which it helped to market.
Nonetheless, to mark its 25th anniversary, PropNex plans to pay an unique dividend of 2.5 cents per share, on top of a final reward of 3 cents. This will certainly carry its total dividend payout for FY2024 to a document of 7.75 cents, representing a payment ratio of 140.1% and a return of 8.2%.
