PropNex reports lower FY2024 earnings but expects significant pick-up for 1HFY2025
The firm clarifies that the economic effects of these sales will only be reserved three to four months later, suggesting a significant pick-up when it shows its current 1HFY2025 numbers.
Despite the reduced earnings for the year, PropNex has actually observed a pick up in activities in the remaining quarter of 2024, led by a surge in new private home units which it helped to sell.
Ismail notes that newly-launched ventures like The Orie, Bagnall Haus, Parktown Residence and ELTA have produced solid market attraction.
This is underpinned by an approximated 13,000 new unit release (including ECs)– almost double the supply logged in 2024.
“Fewer five-year minimum occupation duration apartments getting in the market, coupled with sustained demand from immediate property buyers, not successful Build-To-Order applicants, and budget-conscious families, will certainly continue to support this segment,” says PropNex.
Earnings plunged 6.6% in FY2024 over FY2023, because of the “reasonably controlled property market”.
The private resale market, on the other hand, is set to remain active, with purchase quantities prepared for to range between 14,000 and 15,000 units.
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“We anticipate a favorable demand for developers’ sales in 2025, featuring a compelling line-up of projects. Additionally, a favorable financial outlook and lower home mortgage rates could additionally boost market confidence, developing chances for both property buyers and financiers,” he includes.
Nonetheless, to note its 25th anniversary, PropNex plans to pay an unique returns of 2.5 cents per share, on top of a final returns of 3 cents. This will carry its total returns payment for FY2024 to a record of 7.75 cents, representing a payment ratio of 140.1% and a yield of 8.2%.
“In view of this, and assumptions of a good real estate market expectation in 2025, the group is positive of a strong performance in FY2025, preventing unexpected events,” specifies PropNex.
HDB resale, the various other crucial market, will likely see price growth of 5% to 7%, with volumes reaching 29,000 to 30,000 units.
“Demand is going to be sustained by the consistent price gap between new and non-landed resale properties, a choice for larger, move-in-ready homes and the impact of fewer new supply completions,” states PropNex.
Singapore’s most extensive property company PropNex has disclosed incomes of $21.9 million for its 2HFY2024 ended Dec 31, 2024, down 14.9% y-o-y. This brings its full-year revenues to $40.9 million, 14.4% lesser compared to the preceding FY2023.
