PropNex reports lower FY2024 earnings but expects significant pick-up for 1HFY2025
The company explains that the economic impacts of these sales will only be booked three to four months later, recommending a considerable pick-up when it shows its current 1HFY2025 numbers.
Nonetheless, to mark its 25th anniversary, PropNex plans to pay a special returns of 2.5 cents per share, on top of a final reward of 3 cents. This will deliver its total returns payout for FY2024 to a record of 7.75 cents, representing a payout ratio of 140.1% and a yield of 8.2%.
“Less five-year minimum occupation period apartments going into the marketplace, combined with sustained need from immediate property buyers, not successful Build-To-Order applicants, and budget-conscious family members, will continue to sustain this section,” says PropNex.
Ismail observes that newly-launched ventures like The Orie, Bagnall Haus, Parktown Residence and ELTA have actually created strong market interest.
Bagnall Haus Roxy Pacific Holdings Limited
“We anticipate a favorable demand for developers’ sales in 2025, including an engaging line-up of tasks. Additionally, a favorable economic outlook and lower home mortgage rates could further strengthen market assurance, producing opportunities for both property buyers and financiers,” he adds.
Singapore’s most extensive real estate company PropNex has actually reported incomes of $21.9 million for its 2HFY2024 ended Dec 31, 2024, lower 14.9% y-o-y. This brings its full-year revenues to $40.9 million, 14.4% lesser compared to the preceding FY2023.
“Demand is going to be fuelled by the consistent cost gap between brand-new and non-landed resale properties, a choice for larger, move-in-ready homes and the effect of lesser brand-new supply finishes,” says PropNex.
Despite the reduced incomes for the year, PropNex has noticed a pick up in events in the remaining quarter of 2024, led by a surge in new exclusive home units which it assisted to market.
Profits plunged 6.6% in FY2024 over FY2023, due to the “reasonably controlled real estate market”.
“In view of this, and assumptions of a great real estate market outlook in 2025, the team is confident of a solid productivity in FY2025, disallowing unexpected events,” specifies PropNex.
The private resale market, meanwhile, is set to continue to be active, with deal volumes expected to range between 14,000 and 15,000 units.
HDB resale, the other key market, will likely see price growth of 5% to 7%, with quantities reaching 29,000 to 30,000 units.
This is underpinned by a determined 13,000 new unit launches (including ECs)– almost double the quantity logged in 2024.
