Singapore’s leading real estate agency, PropNex, has recorded a profit of $21.9 million for the second half of its financial year ending Dec 31, 2024, a decrease of 14.9% compared to the previous year. This brings the company’s full-year earnings to $40.9 million, a decline of 14.4% from the preceding financial year.
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Revenue also saw a dip of 6.6% in the 2024 financial year, as the property market remained subdued. However, in celebration of its 25th anniversary, PropNex has announced a special dividend of 2.5 cents per share, in addition to a final dividend of 3 cents. This will bring the total dividend payout for the year to a record high of 7.75 cents, with a payout ratio of 140.1% and a yield of 8.2%.
Despite the decrease in earnings, PropNex has observed a rise in market activity in the last quarter of 2024, driven by increased sales of new private homes, which the company had assisted in selling.
In light of this, and with a positive outlook for the property market in 2025, PropNex is confident of a strong performance in the coming year, barring any unforeseen events. The company expects to see continued growth in the private residential market, with an estimated 13,000 new units (including Executive Condominiums) set to be launched, almost double the supply recorded in 2024.
The private resale market is also expected to remain active, with transaction volumes projected to range between 14,000 and 15,000 units. This demand will be driven by the persistent price difference between new and resale properties, a preference for larger, move-in-ready homes, and the limited supply of new units.
PropNex also predicts growth in the Housing and Development Board (HDB) resale market, with prices estimated to increase by 5% to 7%, and transaction volumes reaching 29,000 to 30,000 units. The company attributes this to the decreased supply of five-year minimum occupation period flats, coupled with sustained demand from urgent homebuyers, unsuccessful applicants for Build-To-Order flats, and budget-conscious families.
PropNex CEO, Kelvin Ismail, notes that several newly-launched projects such as The Orie, Bagnall Haus, Parktown Residence, and ELTA have received positive market response. He also anticipates a strong demand for developers’ sales in 2025, as there is a promising lineup of projects. With a positive economic outlook and lower mortgage rates, the company believes that market confidence will further increase, creating opportunities for homebuyers and investors.