PropNex reports lower FY2024 earnings but expects significant pick-up for 1HFY2025
Revenue dipped 6.6% in FY2024 over FY2023, because of the “reasonably controlled property market”.
This is underpinned by an estimated 13,000 new unit launches (including ECs)– nearly double the quantity registered in 2024.
Singapore’s biggest realty company PropNex has actually reported incomes of $21.9 million for its 2HFY2024 ended Dec 31, 2024, lower 14.9% y-o-y. This carries its full-year incomes to $40.9 million, 14.4% lesser compared to the preceding FY2023.
The firm clarifies that the financial effects of these sales will only be booked three to four months later on, recommending a significant pick-up when it reports its current 1HFY2025 numbers.
HDB resale, the other key market, will likely see price growth of 5% to 7%, with quantities reaching 29,000 to 30,000 units.
“In view of this, and assumptions of a great real estate market outlook in 2025, the group is certain of a solid productivity in FY2025, barring unforeseen events,” mentions PropNex.
“We expect a positive need for designers’ sales in 2025, featuring an engaging line-up of projects. Additionally, a favorable economic outlook and lower mortgage prices could even more strengthen industry assurance, creating possibilities for both property buyers and investors,” he incorporates.
In spite of the lower earnings for the year, PropNex has noticed a pick up in activities in the last quarter of 2024, led by a surge in new exclusive home units that it assisted to market.
“Demand will be fuelled by the consistent cost gap between new and non-landed resale properties, a choice for bigger, move-in-ready homes and the impact of fewer brand-new supply completions,” claims PropNex.
“Fewer five-year minimum occupation period apartments getting in the marketplace, coupled with sustained demand from immediate homebuyers, not successful Build-To-Order applicants, and budget-conscious family members, will certainly continue to sustain this sector,” says PropNex.
Ismail observes that newly-launched projects like The Orie, Bagnall Haus, Parktown Residence and ELTA have created solid market interest.
The private resale market, meanwhile, is readied to remain active, with deal volumes prepared for to range between 14,000 and 15,000 units.
Nonetheless, to note its 25th anniversary, PropNex plans to pay a special dividend of 2.5 cents per share, on top of a final reward of 3 cents. This will bring its total returns payout for FY2024 to a record of 7.75 cents, representing a payment ratio of 140.1% and a yield of 8.2%.
