DBS upgrades PropNex and APAC Realty to ‘buy’ amid strong pipeline of new launches in 2025
The recoil will mainly be driven by three major aspects: lower mortgage prices; property owners, upgraders and long-term people purchasing homes on their own; along with the introduction of a wider array of ventures with solid features.
” We have transferred the multiple towards +1 standard deviation (s.d.) (versus [a] five-year average of 12 times), as the marketplace and the company’s profitability go to an inflexion factor,” the analysts compose.” [PropNex’s] FY2025/FY2026 dividend yield of 7.7% (80% payout ratio) is appealing, with potential benefit if the team decides to distribute its cash reserves (16 cents per share) to shareholders.”
On The Other Hand, APAC Real estate’s new target rate represents a higher P/E multiple of 13 times in line with its four-year historical standard on rolled-forward FY2025 earnings.
DBS Group Research has improved its calls on PropNex and APAC Realty to “acquire” from “hold” as both counters are tipped to take advantage of a strong pipeline of brand-new release in 2025.
Meyer Blue UOL Group Limited & Singapore Land
” The group’s industry share in discreet new sales and resale has raised to 56% -60%, significantly greater than pre-pandemic stages,” note Tan and Foo for PropNex particularly, including that these amounts indicate that one in every 2 sales is made by a PropNex broker. With this in mind, a possible surge in market share as PropNex contributes to its sales force, would certainly offer upside potential to the experts’ assessments.
PropNex is the biggest real estate agency in Singapore with about 12,000 brokers making up 34% of the country’s market share. APAC Real estate is one of the major players in the real estate brokerage firm industry. It has a presence in 17 Asia Pacific (APAC) countries and among the largest brand presences in Asia with its ERA franchise business network.
an and Foo have boosted their target price estimates for both PropNex and APAC Realty to $1.15 and 50 cents from 95 cents and 48 cents specifically.
In 2025 to 2026, the analysts also see nonpublic resell sales continuing to be “secure” at 13,500 to 14,000 units. Sell-through rates might average in between 30% to 50% throughout launch week ends, which might sustain a continuous turnaround in success for both firms.
” We expect a rebound in overall quantities in 2025, steered by new sales going back to [near] 8,000-8,500 units yearly. This is supported by stable property rates, with changes assumed in the range of +1% to +2%,” state Derek Tan and Tabitha Foo in both records dated Jan 6.
Their brand-new target cost for PropNex is secured to 15 times the firm’s P/E on rolled-forward and modified FY2025 incomes. PropNex’s FY2025 revenues estimates were decreased to make up lower total sales and margins assumptions.
