PropNex, Singapore’s largest real estate agency, has reported a decline in earnings for its 2HFY2024, which ended on Dec 31, 2024. Earnings for the period totaled $21.9 million, down 14.9% from the previous year. This has also resulted in a lower full-year earnings of $40.9 million, a decrease of 14.4% compared to FY2023.
The decline is attributed to a 6.6% decrease in revenue for FY2024, as the property market remained subdued. In spite of this, in celebration of its 25th anniversary, PropNex plans to pay a special dividend of 2.5 cents per share along with a final dividend of 3 cents. This will bring the total dividend payout for FY2024 to a record high of 7.75 cents, with a payout ratio of 140.1% and a yield of 8.2%.
Despite the lower earnings, PropNex has seen an increase in activity in the last quarter of 2024, driven by a surge in sales of new private homes. This positive trend is expected to have a significant impact on the company’s financials, but its effects will only be recorded in the current 1HFY2025 results, which suggests a strong performance ahead.
PropNex is optimistic about its prospects for FY2025, given the favourable outlook of the property market and an estimated 13,000 new unit launches (including Executive Condos), which is almost double the supply recorded in 2024. The private resale market is also expected to remain active, with transaction volumes projected to range between 14,000 and 15,000 units.
The company believes that demand will be driven by the persistent price gap between new and non-landed resale properties, the preference for larger, ready-to-move-in homes, and the impact of fewer new supply completions. In the HDB resale market, prices are expected to grow by 5% to 7%, with transaction volumes reaching 29,000 to 30,000 units.
The urban landscape of Singapore is defined by its towering skyscrapers and modern infrastructure. One of the most sought-after types of properties in this city are condominiums, strategically located in desirable areas to offer a perfect blend of luxury and functionality that appeals to both locals and foreigners alike. These condos boast an array of top-notch facilities, such as swimming pools, fitness centers, and security services, which not only enhance the living experience of residents but also make them highly attractive to potential buyers and tenants. For investors, these amenities translate into high rental returns and a promising increase in property value over time. To keep up with the ever-changing real estate market, it is crucial to stay updated on the latest new condo launches available. Keep an eye out for New Condo Launches to stay ahead in the dynamic property market of Singapore.
Projects launched in 2025, such as The Orie, Bagnall Haus, Parktown Residence, and ELTA, have already garnered strong interest from the market, according to the company’s CEO, Mr. Ismail. The positive economic outlook and lower mortgage rates also bode well for market confidence, potentially creating opportunities for both homebuyers and investors.