PropNex reports lower FY2024 earnings but expects significant pick-up for 1HFY2025
HDB resale, the other essential market, will likely see price growth of 5% to 7%, with volumes getting to 29,000 to 30,000 units.
This is underpinned by an estimated 13,000 new unit launches (including ECs)– nearly double the quantity logged in 2024.
Regardless of the lower earnings for the year, PropNex has observed a pick up in activities in the remaining quarter of 2024, led by a rise in new exclusive home units which it helped to offer.
The private resale market, meanwhile, is set to continue to be engaged, with deal quantities anticipated to range between 14,000 and 15,000 units.
Singapore’s most extensive realty firm PropNex has reported profits of $21.9 million for its 2HFY2024 ended Dec 31, 2024, down 14.9% y-o-y. This brings its full-year profits to $40.9 million, 14.4% lesser compared to the preceding FY2023.
Hillock Green showflat location
Ismail notes that newly-launched projects including The Orie, Bagnall Haus, Parktown Residence and ELTA have produced strong market attraction.
Revenue dipped 6.6% in FY2024 over FY2023, because of the “fairly subdued real estate market”.
Nonetheless, to note its 25th anniversary, PropNex plans to pay an unique reward of 2.5 cents per share, on top of a final returns of 3 cents. This will bring its total reward payout for FY2024 to a document of 7.75 cents, representing a payout ratio of 140.1% and a return of 8.2%.
“Fewer five-year minimum occupation period apartments getting in the market, combined with continual need from urgent homebuyers, unsuccessful Build-To-Order applicants, and budget-conscious family members, will certainly remain to sustain this sector,” claims PropNex.
The company explains that the monetary effects of these sales will only be booked three to 4 months later, recommending a considerable pick-up when it shows its current 1HFY2025 numbers.
“We anticipate a favorable demand for developers’ sales in 2025, featuring a compelling line-up of jobs. Additionally, a favorable economic outlook and lower home mortgage rates might further bolster industry confidence, developing opportunities for both property buyers and capitalists,” he adds.
“Demand is going to be fuelled by the relentless cost gap between new and non-landed resale properties, a choice for bigger, move-in-ready homes and the impact of lesser new supply completions,” claims PropNex.
“In view of this, and expectations of a good property market expectation in 2025, the group is positive of a solid efficiency in FY2025, disallowing unexpected events,” states PropNex.
