PropNex Last:1.79 -

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agencies earn 10% cut frrom sales depending on performance leaders pay much less, rookies pay 30% cut and when comm earned up to 80k, cut drops to 10%, take note long overdue, possibly implemention of absd and ssd for commercial particulaly shophouses of consevation/heritage status which are limited in numbers to prevent too many owned by foreign and family offices investors including the wealthy and understand some flipping madly after barely owning for a year and less. 6% BSD is just a chicken feet when buying over 5 to 25 mill of each shophouse. buyers and regulators should dyodd

Keep tight tight for bonus issue and solid dividend yield !

This company is more stable and revenue is higher than APAC Realty.

Now being the largest Real Estate Agency in Sg. Who knows, maybe other agencies get acquired by this company. Wow... the Value of the company sure shoot up super high.

Exactly.

There is lots of potential in this counter. Hidden Talent. It' s a matter of time that investors realise about this uncover hidden talent. By then it might have hit $3 -$4.

DYODD

MBULLISH ( Date: 28-Feb-2023 09:25) Posted:

Very good company
Consistently churning out huge profits and divideds and now bonus issue
Long haul investment

PROPOSED BONUS ISSUE OF UP TO 370,000,000 NEW ORDINARY SHARES IN THE CAPITAL OF PROPNEX LIMITED (THE " COMPANY" ) ON THE BASIS OF ONE (1) BONUS SHARE FOR EVERY ONE (1) EXISTING ORDINARY SHARE IN THE CAPITAL OF THE COMPANY HELD BY SHAREHOLDERS
https://links.sgx.com/1.0.0/corporate-announcements/473OU9FO8GXTVZF8/748127_PXL-Proposed%20Bonus%20Issue-28.02.2023.pdf

FY22 results Press release
https://links.sgx.com/1.0.0/corporate-announcements/M8K9AU4968WY07R1/748125_PX%20-%20FY2022%20Results%20News%20Release%20-%20Final.pdf

Big fat dividends coming for propnex and Apac.
Should be good results because of China super rich transferring their money over here to chop up properties

China' s mega-rich move their wealth, and partying, to Singapore

Singapore is increasingly viewed as a home rather than just a backup plan for ultra high-net-worth Chinese clients, as this is where their " family wealth is kept safe" , say industry insiders.

- CNA

PropNex and APAC Realty starting to gain greater benefits with the opening up from China, rental commission and buy and sell commission slowly recovering. Should be waiting for fat dividends coming your way.

PropNex introduces commission sharing standard for grievance handling, co-broking

CO-BROKING PropNex Realty agents may now refer to a set of rental commission sharing recommendations set out by the company&rsquo s new tripartite standard on grievance handling and co-broking.

Announced on Monday (Nov 28), the tripartite standard is headed by PropNex&rsquo s Real Estate Salesperson (RES) Chapter committee. PropNex said this committee will ensure disputes by salespersons are &ldquo looked into impartially&rdquo .

All feedback must contain facts, information and evidence related to the transaction &ndash and &ldquo not mere bare assertion not supported by any evidence&rdquo &ndash before being looked into by the RES Chapter, said the company.

Under the minimum rental commission sharing standard, tenant agents will be entitled to 50 per cent of the commission collected by landlord agents in a co-broking transaction should the rental amount exceed S$4,000 monthly for a term of more than 24 months. Any amount above the market rate commission need not be shared with tenant agents.

Should the rental duration be less than 24 months, tenant agents will still be entitled to 50 per cent of the commission collected by landlord agents &ndash but not exceeding half a month&rsquo s worth of rental.

Both landlords and agent tenants are recommended to collect commission from their respective clients should the rental amount be under S$4,000. No sharing will be required unless both parties have agreed upfront, and in writing, for the amount to be shared.

PropNex said it reserves the full right and discretion to determine the amount of commission to be shared, or enforce disciplinary action, in events where agents block or deny co-broking a transaction.

Desmond Tan, Minister of State in the Prime Minister&rsquo s Office, said the new guidelines on co-broking commissions will &ldquo help create a better working environment&rdquo for PropNex agents. Tan attended the agency&rsquo s event on Monday as guest of honour.

&ldquo One of the key concerns that has been significantly raised by salespersons on the ground is the need for fair practice for co-broking in the market. Salespersons, especially those who serve in the rental market, shared how challenging it is to co-broke with fellow salespersons to secure the listings for their clients,&rdquo said PropNex chief executive Ismail Gafoor.

&ldquo Hence, to protect our salespersons and consumers in the long run, it is important that we set the standards at a company level, to ensure co-broking standards are established.&rdquo

PropNex Q3 net profit rises 21.9% to S$17.6 million on higher revenue

MAINBOARD-LISTED real estate agency PropNex on Wednesday (Nov 9) reported a 21.9 per cent increase in net profit for the third quarter on the back of higher revenue.

Net profit for the three months ending Sep 30, 2022, rose to S$17.6 million from S$14.4 million in the year-ago period. Revenue rose 10.2 per cent over the same period to S$258.4 million.

On a per share basis, earnings improved to S$0.0475 in Q3 FY 2022, from S$0.0389 in the prior year period. No dividend was declared, unchanged from the previous year.

For the nine-month period ended September, the group reported revenue of S$730.8 million, up 2.1 per cent year-on-year, while net profit fell 2.5 per cent on year to S$44.6 million.

PropNex chief executive Ismail Gafoor said the market has remained &ldquo remarkably resilient&rdquo in the past nine months, with both private residential and HDB resale segments continuing to make price gains in Q3 2022.

While there have been fewer project launches at the start of the year, PropNex has had &ldquo healthy growth&rdquo from the increase in its salesforce, Gafoor said. &ldquo We are focused on maintaining our momentum for the remaining of the year.&rdquo

Since the beginning of this year, PropNex salesforce headcount has grown 11.8 per cent to 12,065 as at Nov 2.

Gafoor noted that recent calibrations to cooling measures by the government are &ldquo needful and timely&rdquo but the effect has yet to be seen in the market.

PropNex expects transaction volumes for private residential resale to remain muted, given the tight resale inventory.

&ldquo Owners may be reluctant to sell, and instead opt to tap the strong rental demand while increase in rents may also help to defray any increase in monthly mortgage payments due to rising interest rates,&rdquo the company said.

The group also projects that HDB resale price could rise by 9-10 per cent this year, lower than the 12.7 per cent increase in 2021.

Net asset value per share for the group stood at S$0.2913 as at Sep 30, 2022, slightly lower than S$0.2958 on Dec 31, 2021.

just sharing this thought those who do not know residential and shophouses stamp duties, with the regulator favouring without absd and ssd for shophouses, many investors are not ready to be tempted to invest as prices have soared to skyhigh, transaction dollar already dropped, F& B finding rentals overly expensive to enjoy profits albeit any profits go to the shophouse owners using it to pay the interest and principal payments. developers know the residential supply is short in the next 3-5 years, commission dropped 2/3 percentage points from above 5, and high interest rates are putting off buyers, expect lacklustre growth for agencies and agents no longer wait to gamble the career with one or two deals per year albeit for those preferring to live a relaxed and spartan lifestyle, prices to drop next few years. put the money into fixed deposit and make more for next 3 to 5 years DYODD

Retracting back to $1 and possibly to $0.7.

With the Covid-19 situation remains rampant, and weak economic data and high interest rates, overall transaction volume in the next 1-2 years is expected to remain subsuded. This will affect the earnings of real estate developers and agencies.

From DBS 3rd Oct

PropNex Ltd

Not spared from new cooling measures

Impacted by another round of cooling measures despite market leadership position
Cut FY22/23 transaction assumptions by 4% to 30%
Given its market leading position and growing sales force, we expect earnings to recover in FY24F
But given the overhang from the latest measures, we downgrade to FULLY VALUED with lower TP of S$1.19

Red hot sellers market is facing stand-off resulting from several economic whammies:-
Cooling measures, rising interest rates, inflation and impending global recession triggered by trade sanctions by EU against Russia etc
Question - who will blink first?
Many new condo units due to completion and TOP between now to the first half of 2023.
Speculative multi-units property investors who are over leveraged are now sweating.
Gradually and surely property buyers are having the advantage.
Expect to see lower transaction volumes thereby impacting these property counters top and bottomlines.
My thots

Joelton ( Date: 05-Oct-2022 09:03) Posted:

CGS-CIMB lowers target prices for property plays amid cooling measures

CGS-CIMB has lowered target prices for real estate companies PropNex : OYY +2.08% and Apac Realty : CLN 0% as it expects near-term market prospects to be dampened by the latest set of property cooling measures.

PropNex and Apac Realty&rsquo s target prices have been cut from S$2.07 to S$1.89 and S$0.84 to S$0.77, respectively. Both counters continue to be rated &ldquo add&rdquo .

The cooling measures include raising the interest rate floor for Total Debt Service Ratio (TDSR) and Mortgage Service Ratio, as well as a wait-out period of 15 months for private property owners buying non-subsidised Housing Board (HDB) flats.

In a report on Monday (Oct 3), analyst Lock Mun Yee noted that the measures are likely to result in quieter market activity due to market sentiments being affected and potential buyers evaluating the impact of these changes on affordability.

&ldquo In all, we think that raising the floor interest rate for TDSR computation could dial down affordability by 5-6 per cent, thus impacting marginal buyers,&rdquo Lock said.

&ldquo The slower market activity could likely impact property brokers&rsquo commission income in the near to medium term.&rdquo

Due to the expected drop in private resale market volume transaction assumptions and project HDB resale transactions, Lock has lowered her FY2022-24 earnings per share (EPS) forecasts for PropNex by 2.5 to 5.1 per cent.

Apac Realty&rsquo s EPS forecasts have also been shaved by 3.3 to 5.9 per cent for the same period.

Despite lower projections, Lock continues to like both property plays for their strong fundamentals.

The analyst believes PropNex is well-placed to weather the slower market due to its strong agent force, with new income streams expected from the group&rsquo s business forays in H1 2022.

Meanwhile, Lock highlights Apac Realty&rsquo s market and activity diversification could provide a stable base for the group.

Noting that its new business unit, capital markets and investment sales, has &ldquo garnered good traction&rdquo since it was established earlier this year, the analyst believes Apac Realty&rsquo s diversified regional presence will enable it to ride on a recovery in any of these markets.