PropNex reports lower FY2024 earnings but expects significant pick-up for 1HFY2025
Profits dipped 6.6% in FY2024 over FY2023, because of the “relatively subdued property market”.
“In view of this, and assumptions of a good real property market overview in 2025, the group is confident of a solid performance in FY2025, barring unexpected events,” specifies PropNex.
Still, to note its 25th anniversary, PropNex considers to pay an unique returns of 2.5 cents per share, in addition to a final reward of 3 cents. This will carry its total returns payout for FY2024 to a document of 7.75 cents, representing a payment ratio of 140.1% and a yield of 8.2%.
Ismail observes that newly-launched ventures including The Orie, Bagnall Haus, Parktown Residence and ELTA have actually produced strong market attention.
Singapore’s largest property firm PropNex has disclosed revenues of $21.9 million for its 2HFY2024 ended Dec 31, 2024, lower 14.9% y-o-y. This takes its full-year revenues to $40.9 million, 14.4% lower compared to the preceding FY2023.
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The private resale market, on the other hand, is readied to continue to be active, with deal quantities expected to range in between 14,000 and 15,000 units.
“We prepare for a favorable need for developers’ sales in 2025, including a compelling line-up of tasks. Additionally, a positive financial outlook and lesser home loan prices might further strengthen market confidence, creating possibilities for both property buyers and investors,” he adds.
The firm describes that the financial impacts of these sales will just be reserved 3 to four months later, suggesting a significant pick-up when it declares its current 1HFY2025 numbers.
HDB resale, the various other essential market, will likely see price growth of 5% to 7%, with quantities getting to 29,000 to 30,000 units.
Despite the lower incomes for the year, PropNex has observed a pick up in activities in the final quarter of 2024, led by a rise in brand-new private home units which it helped to offer.
“Less five-year minimum occupation duration apartments entering the marketplace, combined with continual need from immediate property buyers, unsuccessful Build-To-Order applicants, and budget-conscious families, will continue to sustain this section,” says PropNex.
“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 effect of lesser new supply finishes,” claims PropNex.
This is underpinned by an estimated 13,000 new unit release (including ECs)– almost double the quantity recorded in 2024.
