PropNex, Singapore’s largest real estate agency, has announced a decline in earnings of 14.9% year-on-year to $21.9 million for the second half of FY2024 ended on December 31, 2024. This brings the full-year earnings to $40.9 million, representing a 14.4% drop compared to the previous FY2023.
The decrease in revenue of 6.6% for FY2024 as compared to FY2023 can be attributed to the relatively subdued property market. However, in celebration of 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 bring the total dividend payout for FY2024 to a record of 7.75 cents, with a payout ratio of 140.1% and a yield of 8.2%.
Despite the lower earnings for the year, PropNex has observed an increase in activity in the last quarter of 2024, driven by a surge in new private home units which the agency helped to sell. This is also reflected in DBS’s recent upgrade of PropNex and APAC Realty to “buy”, citing a strong pipeline of new launches in 2025.
According to PropNex, the financial effects of these sales will only be reflected in its current 1HFY2025 numbers after three to four months, indicating a significant pick-up in the market. The company is optimistic about a strong performance in FY2025, barring any unforeseen events, given the positive outlook for the property market.
The strong demand for new homes is supported by an estimated 13,000 new unit launches (including ECs), almost double the supply in 2024. The private resale market is expected to remain active with transaction volumes ranging between 14,000 and 15,000 units, driven by a persistent price gap between new and resale properties, a preference for larger, move-in-ready homes, and limited new supply completions.
In the HDB resale market, PropNex predicts a price growth of 5% to 7% and transaction volumes between 29,000 and 30,000 units. The agency believes that the limited supply of five-year minimum occupation period flats and sustained demand from urgent homebuyers, unsuccessful Build-To-Order applicants, and budget-conscious families will continue to support this segment.
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PropNex has observed strong market interest in newly-launched projects such as The Orie, Bagnall Haus, Parktown Residence, and ELTA. The agency is optimistic about a positive demand for developers’ sales in 2025, with an attractive line-up of projects. A positive economic outlook and lower mortgage rates may also boost market confidence, encouraging opportunities for both homebuyers and investors.