PropNex reports lower FY2024 earnings but expects significant pick-up for 1HFY2025
Singapore’s biggest real estate firm PropNex has actually disclosed profits of $21.9 million for its 2HFY2024 ended Dec 31, 2024, lower 14.9% y-o-y. This carries its full-year profits to $40.9 million, 14.4% lesser compared to the preceding FY2023.
Ismail observes that newly-launched projects including The Orie, Bagnall Haus, Parktown Residence and ELTA have generated strong market interest.
“In view of this, and assumptions of a good real estate market overview in 2025, the group is confident of a strong efficiency in FY2025, disallowing unexpected events,” specifies PropNex.
This is underpinned by an estimated 13,000 new unit launches (including ECs)– nearly double the supply recorded in 2024.
Nonetheless, to note its 25th anniversary, PropNex intends to pay an unique returns of 2.5 cents per share, on top of a final reward of 3 cents. This will carry its total dividend payout for FY2024 to a record of 7.75 cents, representing a payout ratio of 140.1% and a turnout of 8.2%.
“We anticipate a favorable demand for developers’ sales in 2025, including an engaging line-up of projects. Additionally, a favorable financial outlook and lower home loan rates could better bolster market confidence, developing possibilities for both homebuyers and investors,” he incorporates.
The company clarifies that the financial effects of these sales will only be booked 3 to 4 months later on, recommending a considerable pick-up when it reports its existing 1HFY2025 numbers.
Regardless of the lower incomes for the year, PropNex has noticed a pick up in activities in the final quarter of 2024, led by a rise in new private home units which it helped to offer.
Profits dipped 6.6% in FY2024 over FY2023, as a result of the “reasonably subdued real estate market”.
“Less five-year minimum occupation duration flats entering the market, coupled with continual demand from immediate property buyers, unsuccessful Build-To-Order applicants, and budget-conscious families, will certainly remain to support this segment,” claims PropNex.
HDB resale, the various other essential market, will likely see price growth of 5% to 7%, with volumes getting to 29,000 to 30,000 units.
“Demand is going to be fuelled by the persistent rate gap between brand-new and non-landed resale properties, a choice for bigger, move-in-ready homes and the effect of lesser brand-new supply completions,” says PropNex.
The private resale market, meanwhile, is readied to remain engaged, with deal quantities anticipated to range in between 14,000 and 15,000 units.
