PropNex reports lower FY2024 earnings but expects significant pick-up for 1HFY2025
Income plunged 6.6% in FY2024 over FY2023, because of the “relatively subdued real estate market”.
HDB resale, the other vital market, will likely see price growth of 5% to 7%, with quantities reaching 29,000 to 30,000 units.
Singapore’s largest real estate firm PropNex has actually disclosed earnings of $21.9 million for its 2HFY2024 ended Dec 31, 2024, down 14.9% y-o-y. This brings its full-year earnings to $40.9 million, 14.4% lower compared to the preceding FY2023.
This is underpinned by an estimated 13,000 new unit release (including ECs)– almost double the supply logged in 2024.
The private resale market, on the other hand, is readied to remain active, with transaction volumes prepared for to range in between 14,000 and 15,000 units.
Ismail observes that newly-launched projects such as The Orie, Bagnall Haus, Parktown Residence and ELTA have generated strong market interest.
Regardless of the reduced profits for the year, PropNex has actually observed a pick up in activities in the final quarter of 2024, led by a surge in brand-new exclusive home units which it helped to market.
“Fewer five-year minimum occupation duration apartments going into the marketplace, coupled with continual need from urgent property buyers, not successful Build-To-Order applicants, and budget-conscious families, will certainly continue to sustain this sector,” states PropNex.
“We anticipate a positive need for programmers’ sales in 2025, including an engaging line-up of tasks. Additionally, a positive financial outlook and lesser home mortgage rates could better boost market assurance, creating chances for both property buyers and investors,” he adds.
The business describes that the economic results of these sales will only be booked 3 to four months later, suggesting a significant pick-up when it declares its existing 1HFY2025 numbers.
Nonetheless, to note its 25th anniversary, PropNex plans to pay a special dividend of 2.5 cents per share, on top of a final dividend of 3 cents. This will certainly bring its total dividend payment for FY2024 to a document of 7.75 cents, representing a payment ratio of 140.1% and a turnout of 8.2%.
“In view of this, and expectations of a favourable real property market outlook in 2025, the group is confident of a strong productivity in FY2025, barring unforeseen events,” mentions PropNex.
“Demand will be sustained by the persistent cost gap between new and non-landed resale properties, a preference for larger, move-in-ready homes and the impact of lesser new supply completions,” claims PropNex.
