Propnex Reports Lower Fy2024 Earnings Expects Significant Pick 1Hfy2025
Singapore’s top real estate agency, PropNex, has announced a profit of $21.9 million for the second half of the financial year 2024, which ended on December 31, 2024. This figure reflects a 14.9% decrease from the previous year. The total earnings for the full year were $40.9 million, showing a 14.4% decline compared to the previous financial year, 2023.
The agency attributed the decrease in revenue to the relatively slow property market. However, in celebration of its 25th anniversary, PropNex has declared 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 of 7.75 cents per share, with a payout ratio of 140.1% and a yield of 8.2%.
Although the agency experienced lower earnings for the year, it recorded an increase in activity in the last quarter of 2024, driven by a surge in new private home units that it helped to sell. It is worth noting that the financial effects of these sales will be reflected in the company’s current financial numbers, which will be reported three to four months later. This suggests a significant increase in the upcoming 1HFY2025 report.
PropNex remains optimistic about its performance in FY2025, thanks to the positive outlook for the property market in Singapore. The agency expects strong demand in the coming year, supported by an estimated 13,000 new unit launches (including Executive Condominiums), which is almost double the supply recorded in 2024. Additionally, the private resale market is expected to remain active, with transaction volumes estimated to range between 14,000 and 15,000 units.
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PropNex attributes this demand 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. In the HDB segment, the agency predicts a price growth of 5% to 7%, with transaction volumes reaching 29,000 to 30,000 units. This growth is expected to be supported by fewer five-year minimum occupation period flats entering the market, along with sustained demand from urgent home buyers, unsuccessful Build-To-Order applicants, and budget-conscious families.
PropNex CEO, Ismail Gafoor, has expressed confidence in the agency’s performance, stating that newly-launched projects such as The Orie, Bagnall Haus, Parktown Residence, and ELTA have already generated strong interest in the market. He anticipates a positive demand for developers’ sales in 2025, with a promising lineup of projects. Additionally, with a positive economic outlook and lower mortgage rates, there is potential for further market confidence, creating opportunities for both home buyers and investors.