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all the sour grapes start to come out already.
WAHAHAHAHAHAHAHAHAHAHAHAHAHAHAH
WAHAHAHAHAHAHAHAHAHAHAHAHAHAHAH
doom and gloom for the people who missed the boat. it is all upside from here
honesty ( Date: 12-Aug-2025 09:01) Posted:
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depending on agents commission to survive is a challenge once they leave for a permanent job when home prices overwhelm buyers' affordability and no one buys and sells, dyodd
cloudy.mountain ( Date: 12-Aug-2025 08:56) Posted:
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PropNex doubles H1 net profit to S$42.3 million for record half-year performance interim dividend at S$0.05 per share
The interim dividend is also the highest in the company&rsquo s history
didn' t catch the ride is it? market haven' t even open. what market you looking at?
Said Mr Kelvin Fong, Chief Executive Officer (&ldquo CEO&rdquo ) of PropNex1 , &ldquo We expect... a substantial pipeline of launches where more than 3,400 new units (excluding ECs) may potentially come onstream. While downside risks remain, we believe buyers are price conscious, and sensitive pricing by developers will be the key to driving sales momentum at these launches. Buoyed by a record first half and a large, highly-driven salesforce, we maintain our optimism about delivering a strong performance for the full-year of 2025, barring unforeseen events. Our playbook continues to focus on investments in technology and training initiatives to boost productivity and support long-term growth.&rdquo As of 5 August 2025, PropNex reinforced its position as Singapore&rsquo s largest listed real estate agency, with its salesforce expanding to 13,618 from 12,636 as of 1 January 2025.
Said Mr Kelvin Fong, Chief Executive Officer (&ldquo CEO&rdquo ) of PropNex1 , &ldquo We expect... a substantial pipeline of launches where more than 3,400 new units (excluding ECs) may potentially come onstream. While downside risks remain, we believe buyers are price conscious, and sensitive pricing by developers will be the key to driving sales momentum at these launches. Buoyed by a record first half and a large, highly-driven salesforce, we maintain our optimism about delivering a strong performance for the full-year of 2025, barring unforeseen events. Our playbook continues to focus on investments in technology and training initiatives to boost productivity and support long-term growth.&rdquo As of 5 August 2025, PropNex reinforced its position as Singapore&rsquo s largest listed real estate agency, with its salesforce expanding to 13,618 from 12,636 as of 1 January 2025.
muifan ( Date: 12-Aug-2025 08:49) Posted:
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Seems like market dont like the result ?.
WOOOHOOOO RESULTS ARE OUT!
HIGHEST EVER 1H RESULTS. HIGHER THAN EVEN THE POST-COVID PERIOD OF FY2021 AND FY2022.
HALF YEAR RESULTS ALREADY MORE THAN FY2024 FULL YEAR RESULTS.
NET PROFIT UP 122% YOY.
WITH SO MANY MORE NEW LAUNCHES IN 2H25, THIS IS GONNA RAIN MONEEEEYYYYYYYYYYYYYY
HIGHEST EVER 1H RESULTS. HIGHER THAN EVEN THE POST-COVID PERIOD OF FY2021 AND FY2022.
HALF YEAR RESULTS ALREADY MORE THAN FY2024 FULL YEAR RESULTS.
NET PROFIT UP 122% YOY.
WITH SO MANY MORE NEW LAUNCHES IN 2H25, THIS IS GONNA RAIN MONEEEEYYYYYYYYYYYYYY
More BTOs mean less PropNex HDB resales ? No ?
cloudy.mountain ( Date: 12-Aug-2025 08:02) Posted:
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today testing $2
the government also wants to &ldquo support more people to be eligible to try for new BTO flats&rdquo , said Mr Chee.
These include families and married couples who exceed the S$14,000 (US$10,877) income ceiling for BTO applications and singles who are only allowed to buy public housing - be it BTO or resale - upon reaching 35 years of age.
&ldquo We are looking at whether we can reduce the age for singles to be eligible, so that singles can come in and buy BTO flats at an earlier age,&rdquo the minister said. &ldquo You can imagine if we lower the age limit for singles or if we raise the income threshold, there will be more applicants who qualify, and therefore demand will go up ... So, I think it' s important for us to create the right conditions to be able to make these policy moves at the appropriate time.&rdquo
from CNA news article.
After stock spilt. Now back to pre stock spilt price again. Kns...
PropNex
On May 30, PropNex executive director and deputy CEO Kelvin Fong Keng Seong acquired 31,000 shares at an average price of S$1.01 per share. His deemed interest is 10.26 per cent. His preceding acquisitions were in April, with 86,000 shares acquired at an average price of S$1.01 apiece. At the April 23 AGM, Fong highlighted a robust pipeline of upcoming and ongoing launches, with inventory expected to reach about 18,000 units in 2025, indicating a healthy market. He also relayed that PropNex continues to lead in market share across multiple new projects, driven not just by its large salesforce but also by high productivity, strong training, and support systems. Fong also maintained that revenue from these transactions is anticipated to be recognised in the first half of 2025.
Fong leads the sales and leadership training initiatives, including the flagship PropNex boot camp which empowers over 2,000 salespersons annually in collaboration with fellow team leaders. He also highlighted at the April AGM that he remains committed to developing its salespersons through training programmes, boot camps, and mindset workshops, reinforcing their role as trusted property consultants. He added that consumer education initiatives and digital tools further enhance customer engagement, while broader outreach efforts and his second book, Property Wealth System: Elevate Your Assets, Elevate Your Wealth, underscore PropNex&rsquo s focus on thought leadership and empowerment.
PropNex is Singapore&rsquo s largest listed real estate agency. At the April AGM, executive chairman and CEO Mohamed Ismail also relayed Frost & Sullivan data that found PropNex represented 35 per cent of Singapore&rsquo s salespersons strength, it accounted for 64 per cent of total property transactions for HDB resale, new launches and private residential resale (including executive condominiums, landed and non-landed) in 2024.
PropNex' s deputy CEO Fong buys more shares
Kelvin Fong, deputy CEO and executive director of PropNex has raised his stake in the company again.
On May 30, Fong bought 31,000 shares from the open market at $1 each. This brings his total stake to 75.96 million shares, equivalent to 10.26%.
Fong had on April 7 and 8 bought 18,000 and 68,000 shares respectively, also at $1 each.
PropNex Realty faces second lawsuit over 99-1 deals
An Indonesian couple is suing the company, salesperson Amos Koh and CK Tan Law, claiming S$849,287
[SINGAPORE] A PropNex : OYY -0.9% unit &ndash together with its salesperson and a law firm &ndash has been sued by an Indonesian couple claiming about S$850,000 over a 99-to-1 transaction, making this the second reported suit of such nature for the mainboard-listed company&rsquo s subsidiary.
This lawsuit came after PropNex Realty was one of the three defendants sued in January 2025 for S$1.2 million over a similar arrangement, where the buyer purchased properties holding 1 per cent stakes in a bid to reduce the Additional Buyer&rsquo s Stamp Duty (ABSD).
Kevin Rahim and Jessica Tjitra sued in February, naming PropNex Realty, salesperson Amos Koh and CK Tan Law Corporation as defendants in their claim of S$849,287.
The Inland Revenue Authority of Singapore (Iras) notified the couple in August 2024 that it would impose the ABSD rate of 30 per cent on the entire purchase price and a surcharge equal to 5 per cent of the amount of additional duty payable.
The two claimants said that Iras deemed theirs a case of &ldquo illegal stamp duty avoidance&rdquo , and therefore treated the purchase as if they had bought the property together from the outset.
Consequently, they paid S$849,287 to the taxman, which is the remaining amount owed out of the 30 per cent ABSD liability of S$987,600 and a S$40,442 surcharge, after offsetting the S$178,755 stamp duty and ABSD they earlier paid.
Now the couple alleged that Koh did not make sure what he had told them about the 99-to-1 arrangement was true and accurate, despite knowing that they would rely on his representations in structuring their purchase in this manner.
Their case against PropNex Realty is that the agency failed to ensure that Koh is adequately trained as a salesperson including being conversant in and comply with the relevant laws, regulation and rules.
The agency had breached the duty of care owed to the claimants by allowing Koh to make false representations to them and allowed the 47-year-old to advise them to use an illegal stamp duty avoidance method, alleged the claimants, who are represented by Gavin Neo of WongPartnership.
Also, it is responsible for Koh&rsquo s alleged negligent misrepresentation to them, the statement of claim said.
Similarly, the claimants alleged that CK Tan Law had failed to ensure that their 99-to-1 arrangement was legal nor advised them that the structure might be construed as unlawful when it represented them in the purchase of the Riviere.
&ldquo The third defendant fell short of the standard would be that expected of a reasonably competent and diligent conveyancing lawyer,&rdquo said the claimants.
Not claimants&rsquo agent: PropNex and Koh
PropNex Realty, however, pointed out in its defence that Koh was not the claimants&rsquo salesperson for the purchase as they had not entered into any estate agency agreement, and that neither the agency nor Koh received any commission or fee from the couple. It and Koh worked for Riviere&rsquo s developer, introducing buyers and brokering sales, and received commissions solely from the developer.
Moreover, Koh was an independent contractor and not its agent or employee, PropNex Realty claimed, and he had undertaken to comply with and observe the rules, policies and professional code it set down as well as those prescribed by the Council for Estate Agencies.
PropNex Realty also claimed that the salesperson had also undertaken that he would be personally liable for any unauthorised or wrongful acts, misrepresentations, fraud or wilful misconduct committed by him in the course of doing sales, and agreed to indemnify the company for claims and legal costs.
It denied that the 28-year-old husband and 33-year-old wife had relied on Koh&rsquo s representations as they were aware that he, as an estate salesperson, was not qualified to provide legal or tax advice.
Meanwhile, Koh claimed he received CK Tan Law&rsquo s presentation slides in a WhatsApp group chat of his division members in May 2020, where there was a section on the steps involved in the 99-to-1 method and that there would be savings on the total stamp duties.
He believed CK Tan Law&rsquo s representation gave the 99-1 method legitimacy as it was provided by a law firm.
PropNex Realty and Koh both contended that the law firm for the claimants&rsquo purchase was under a duty to advise them on the structure as well as the stamp duties payable, and that the claimants must have relied on the firm&rsquo s expertise and professional advice.
&ldquo Not an illegal arrangement&rdquo
But CK Tan Law disputed the allegations, claiming that it was acting on the couple&rsquo s instructions on the 99-to-1 structure in the purchase and mortgage of the Riviere apartment. It also claimed that the couple did not query about the tax implications using this arrangement, and it did not provide any such advice to them either.
The defendant denied that the manner of the purchase could be characterised as &ldquo an illegal stamp duty avoidance arrangement&rdquo because Iras in exercising its powers to vary such an arrangement and impose a surcharge &ldquo did not make it an illegal arrangement&rdquo .
CK Tan Law contended its duty of care as the claimants&rsquo conveyancing lawyer did not include ensuring that the manner of the purchase was not an illegal stamp duty avoidance arrangement, advising them that their method might be construed as illegal, and flagging that the taxman might vary the purchase arrangement and levy a surcharge.
This defendant claimed that the claimants had chosen to use Koh&rsquo s suggested 99-to-1 method in their purchase, thereby contributing to their own loss.
This lawsuit&rsquo s case conference is slated to take place on Apr 30. Meanwhile, the court case where PropNex Realty is being sued for S$1.2 million is believed to be going for mediation, as the courts have always encouraged litigants to settle their disputes by alternative dispute resolution.
PropNex Realty changes law firm in &lsquo 99-to-1&rsquo suit to avoid conflict of interest
Withers KhattarWong previously represented both the property agency and its agent Ian Sng, but the agency has switched to Rajah & Tann
[SINGAPORE] Property agency PropNex Realty has changed its law firm to Rajah & Tann in the &ldquo 99-to-1&rdquo lawsuit to avoid conflict of interest as one of its agents is also being sued.
Previously, Withers KhattarWong represented the property agency and its agent Ian Sng, and had filed defences for both against claims from the claimant Melvin Li.
Both the agent and the agency had disputed Li&rsquo s allegations and claims in their defences filed in February, with PropNex Realty denying that it should be made responsible for its fellow defendant&rsquo s acts.
Now that it is handling the case, Rajah & Tann said that it &ldquo is reviewing the matter, and will advise on the appropriate steps to be taken to protect PropNex&rsquo s interests&rdquo , in response to The Business Times&rsquo query on whether it will file a different defence or update it for PropNex Realty.
PropNex Realty (a unit of mainboard-listed PropNex : OYY 0%), City Law and Sng have been sued for about S$1.2 million after Li was made to top up the Additional Buyer&rsquo s Stamp Duty (ABSD) and pay surcharges imposed by the Inland Revenue Authority of Singapore for his purchases of a 1 per cent interest in each of his parents&rsquo condominium apartments.
The so-called &ldquo 99-to-1&rdquo scheme is a tax avoidance arrangement used by some property buyers to reduce the ABSD payable on the purchase of a residential property.
It enables those who already own a residential property to reduce or avoid paying ABSD, while still becoming a co-owner of an additional property and a co-applicant for a loan to finance the purchase.
Li claimed he took the stake in each of his parents&rsquo properties to help fund their purchases because they were ineligible for bank mortgages. The 43-year-old businessman owns a residential property in his name and would be liable for ABSD for additional residential property purchases.
He alleged that Sng and City Law had advised him that his purchases of a 1 per cent interest were legal, and that the transactions would be valid. He also claimed that the agent had said that such transactions were proposed by his manager and teammates from PropNex, and that they never had any issues.
But after Li sought the taxman&rsquo s clarification, he was made to pay ABSD rates of 17 per cent and 25 per cent, respectively, for his 1 per cent interest in each of his parents&rsquo purchases, resulting in extra stamp duties and surcharges of S$1.2 million.
Disputing Li&rsquo s claim, Sng instead said that he had learnt about the structure from training sessions conducted by law firms and bankers.
He also claimed he was tasked by Li to conduct informal checks with law firms about whether this method could help Li to fund his parents&rsquo property purchases.
Sng thus contacted several law firms and relayed the information to Li, adding that Li would have to check with his conveyancing lawyer whether the method was applicable to his situation, Sng&rsquo s defence showed.
But he accused City Law of having assured Li that the purchase of using the &ldquo 100-sell-1&rdquo method was legitimate, and that the law firm&rsquo s representative did not highlight any potential risk to the claimant.
As for City Law, it is contesting Li&rsquo s claims as well as disputing Sng&rsquo s allegations.
It claimed that it only assisted in the conveyancing of the property transactions in question. The scope of its work did not include advising on the legality or potential implications of the &ldquo 99-to-1&rdquo arrangement. The law firm also claimed that it had not been negligent nor breached its duty of care to Li.
Instead, it alleged that the claimant had already chosen to structure the transactions in the &ldquo 99-to-1&rdquo manner even before the company became involved, and it was not told the reasons for such a structure.
City Law cited Li&rsquo s statement that it was Sng who had advised him that such a structure was legitimate.
Any loss Li is said to have suffered arose because of his reliance on the advice of Sng and PropNex Realty to structure the purchases in the &ldquo 99-to-1&rdquo manner or by the negligence of these two defendants, the law firm alleged.
PropNex H2 profit down 14.9% at S$21.9 million proposes special S$0.025 per share anniversary dividend
The board also proposes a final dividend of S$0.03 per ordinary share
REAL estate agency PropNex reported a 14.9 per cent year-on-year fall in net profit for its second half ended Dec 31 to S$21.9 million, from S$25.8 million.
Its revenue was down 7.7 per cent at S$437.4 million from S$473.8 million in the previous corresponding period, based on the company&rsquo s financial results released on Tuesday (Feb 25).
The lower revenue for the period was driven mainly by a decrease in commission income from project marketing services of S$34.5 million, resulting from fewer transactions being completed for project marketing in H2 FY2024, PropNex said.
Its earnings per share stood at S$0.0296 for the half year, down from S$0.0348 previously.
The board proposed a final dividend of S$0.03 per share, alongside a special dividend of S$0.025 per share to commemorate its 25th anniversary this year, to be paid on May 8 following books closure on Apr 28. This brings the total dividend for FY2024 to S$0.0775 per share, reflecting a payout ratio of 140.1 per cent of its net attributable profit with an 8.2 per cent dividend yield based on the counter&rsquo s share price as at Dec 31, 2024, PropNex said.
For the full year, its net profit was down 14.4 per cent at S$40.9 million from S$47.8 million in the year-ago period. Revenue retreated on the year by 6.6 per cent to S$783 million from S$838.1 million. EPS was S$0.0553 compared with S$0.0646 previously.
The lower revenue for the year was primarily driven by a 23.4 per cent year-on-year decrease in commission income from project marketing services to S$185.6 million, as fewer project marketing transactions were completed in FY2024, PropNex said.
Commission income from agency services rose slightly to S$591.6 million.
Outlook
While market sentiment was muted for the better part of 2024, the fourth quarter of FY2024 witnessed a &ldquo significant rebound in private new home launches&rdquo , the company said in a statement.
Nearly half the agency&rsquo s total private new home transactions for 2024 occurred during this period, noted Ismail Gafoor, executive chairman and chief executive officer of PropNex.
He said: &ldquo The surge in new project launches made Q4 FY2024 an exceptionally strong quarter for PropNex... The financial impact of these transactions will materialise in H1 FY2025, which will put us on track to deliver a strong performance in FY2025, barring unforeseen circumstances.&rdquo
The group expects a positive market outlook in 2025 and forecasts a 3 to 4 per cent rise in overall private home prices for the year.
The private resale market is set to remain lively with demand fuelled by &ldquo the persistent price gap between new and non-landed resale properties, a preference for larger, move-in-ready homes, and the impact of fewer new supply completions&rdquo , the company said.
The Housing and Development Board resale market is primed for a projected 5 to 7 per cent price growth with demand driven by fewer five-year minimum occupation period flats entering the market, as well as sustained interest from buyers with urgent housing needs, unsuccessful applicants of Build-To-Order flats and budget-conscious families, it added.
Lawsuit brought against PropNex unit on alleged salesperson misconduct
PropNex Realty has filed the notice of intention to contest with the court
REAL estate services group PropNex : OYY -0.88% said that its wholly owned subsidiary PropNex Realty, has been named as one of three co-defendants in a lawsuit.
The suit has been filed in the High Court of Singapore by a claimant seeking damages from PropNext Realty for liability arising from the alleged misconduct of one of its salespersons and his purported advice.
In a bourse filing on Tuesday (Feb 11), PropNex said that it has evaluated the basis and merits of the suit and intends to defend it. It has filed the notice of intention to contest with the court.
The suit is not likely to materially impact the financial position and performance of the group for the financial year ending Dec 31, 2025, it noted.
PropNex looks to technology to be its economic moat as it strives to stays ahead
This includes a service that enables its agents to send personalised reports each quarter to past customers to update them on information relevant to their properties
&ldquo THIS year is going to be a good year,&rdquo said PropNex : OYY -1.82% executive chairman and chief executive officer Ismail Gafoor, right at the start of his interview with The Business Times.
The real estate agency is bullish about its prospects this year, on the back of a Singapore property market that holds much promise.
Gafoor&rsquo s upbeat sentiment comes as PropNex celebrates its 25th anniversary this year. And the mainboard-listed company is open to dishing out a special dividend to commemorate the occasion.
The head honcho noted that the number of condominium apartments for sale this year &ndash including unsold units from past years &ndash would amount to about 20,000. Some 12,850 new units are expected to be launched this year, compared with only 7,300 new units rolled out in 2024.
More apartments for sale bode well for the market leader, which has the largest army of agents in Singapore &ndash nearly 13,000 as at Jan 24.
PropNex&rsquo s agents sold more than half (55.5 per cent) of the new launches &ndash including executive condominiums, non-landed and landed properties &ndash in the first half of 2024.
The agency also clinched the lion&rsquo s share of the deals in the resale markets for public flats and private property &ndash at 66.5 per cent and 60.1 per cent, respectively &ndash over the same period.
In the six-month period, it accounted for 48.4 per cent of the transactions in the landed resale market and 37 per cent of the deals in the private leasing market.
PropNex&rsquo s results for the 2024 financial year will be published at the end of February.
While recent new condominium launches have been well-received, Gafoor noted that there is a lag of three to four months before the agency can book the revenue.
Thus, these new launches will contribute only to the company&rsquo s FY2025 results, he said.
Nonetheless, favourable market conditions such as a dip in borrowing cost after the United States Federal Reserve cut policy rates last September and stable employment levels have buoyed demand for property.
&ldquo People are able to secure anything between 2.5 and 2.6 per cent (as) fixed interest rate over a period of two years. So the market confidence has really changed towards the last quarter, and it continues in the recent launches,&rdquo added Gafoor.
Gafoor notes: &ldquo Our business is diversified. No one cooling measure will shrink our pie by 40 to 50 per cent.&rdquo
Building on tech
Although PropNex is already the market leader with a 63.3 per cent share of the local private residential and public housing resale market, it is striving to boost this to at least 66 per cent.
This, its CEO explained, would mean the company would get more data, which is provided to its agents, agents&rsquo customers and developers for them to make informed decisions. This will help the company fend off challenges from proptech platforms, while uplifting its role to beyond that of a middleman.
For example, developers can get the data on what design concepts, unit mixes and price points sell, because PropNex has the statistics across the market.
&ldquo Our data is pumped in by agents on a 24-hour, daily basis,&rdquo Gafoor said, adding that even the Singapore Department of Statistics (Singstat) will not have the latest information because it takes some time for properties to be caveated.
Leveraging technology, the company rolled out in January what the CEO described as akin to a private banker&rsquo s exclusive service that enables its agents to send personalised property reports to select past customers each quarter, updating them on the latest transaction prices, valuations, and insights relevant to their properties.
PropNex invests heavily in technology, but declined to disclose the annual spending. More than 25 per cent of its 200-strong staff are in IT roles, and it reallocated another 5 per cent of its initial public offering proceeds, or S$2 million, to enhance its technology capabilities last August.
Investors have bought PropNex shares in recent months, amid expectations that the company will ride the property upturn and that it would reward shareholders with a 25th-anniversary special dividend. In the year to Feb 6, the counter has gained 16.4 per cent.
Gafoor does not shy away from admitting that it could sweeten shareholder returns with a special payout. &ldquo If you look at (our) cash position, I think we are in a good shape to consider such rewards.&rdquo
As at Jun 30, 2024, PropNex had no borrowings while its cash pile stood at S$134.4 million.
But even without giving a special dividend, the company has been generous to its shareholders &ndash dishing out more than the 75 to 80 per cent stated in its dividend policy. For example, it paid 87.6 per cent of its earnings in H1 FY2024 and 92.9 per cent of its net profit in FY2023.
Gafoor noted that PropNex has positioned itself as a dividend play because of its asset-light and cash-generating business.
He added that the company has not had an immediate need for funds, and therefore has been able to distribute it to shareholders.
Keeping cool amid curbs
When asked about acquisitions that might cause it to dip into its cash reserves, the 61-year-old helmsman said that such a corporate action will not be easy for PropNex in Singapore because it might be subject to regulatory scrutiny, given its position as market leader.
For ventures overseas, cash outlay is not required because PropNex makes inroads via the franchise model, generating franchise fees from day one as well as taking a cut of the commissions.
PropNex has a presence in Malaysia, Indonesia, Cambodia, Vietnam and Australia, with its Malaysian franchisee performing so well that the Singapore agency bought a 20 per cent stake in it.
Gafoor attributed PropNex&rsquo s competitiveness and appeal to its training, structure of dual-career paths that allows agents to eventually take on management roles, and support system.
The agency is on track to achieving its target of a Singapore sales force of 15,000 by 2026, thanks to newbies as well as experienced hands who have joined the company.
&ldquo We tend to get the majority of (the new agents),&rdquo he noted.
This is in spite of the agency, unlike its counterparts, not paying for its agents&rsquo annual licence fee and professional indemnity insurance premium, which he said is because PropNex does not want &ldquo to carry non-productive agents&rdquo .
As for the impact of any potential cooling measures on its business, he pointed out that the agency has diversified its revenue streams.
About 50 per cent of its revenue in H1 FY2024 &ndash 20 per cent from HDB resales, 23 per cent from rentals (usually recurring), 3 per cent from commercial and industrial, and 5 per cent from landed resales &ndash was resilient or not subject to the impact of such restrictions.
The remaining segments comprising private resale and project marketing are more susceptible to any government action to rein in rising property prices and market exuberance.
&ldquo Our business is diversified,&rdquo Gafoor said. &ldquo No one cooling measure will shrink our pie by 40 to 50 per cent &ndash it will not. It&rsquo s just that it takes one to two months for people to understand and re-strategise about how to overcome these challenges.&rdquo
Analysts raise TP on PropNex on strong 2H2024 earnings and no immediate property cooling measures
Analysts are positive on PropNex in the new year, and have raised their target prices for the real estate player in their reports on Jan 22.
OCBC Investment Research (OIR) raises its fair value estimate for PropNex to $1.14 from 96 cents after the company&rsquo s ongoing success in the Singapore market in 4Q2024 and no immediate property cooling measures signal.
Analyst Donovan Tan keeps his &ldquo hold&rdquo call on the largest listed real estate agency in Singapore, which he says operates a highly cash-generative business with an asset-light model, allowing it to deliver returns to investors through high dividend payouts.
Tan notes that PropNex recorded the highest number of units sold in a month in November 2024, since March 2013, with 2,560 units sold. This is a sign of the revitalisation of the private housing market and bringing total new home sales for 2024 to 6,560 units, 2.2% y-o-y increase.
Private residential prices grew at a slower pace of 3.9% y-o-y, compared to gains of 8.6% and 6.8% in 2022 and 2023, respectively, indicating a healthy moderation in price growth, the analyst adds.
With about 11,000 new private homes expected in the pipeline and a strong appetite among condo buyers alongside relatively stable prices, Tan says that transaction volumes are anticipated to remain robust in 2025 driving profitability growth for the company.
On top of that, PropNex&rsquo s share price rose by 10.3% since the close on Jan 15, which Tan believes is driven by positive investor sentiment following comments from National Development Minister Desmond Lee, who said to &ldquo let the supply and demand side measures work through&rdquo .
This indicates that there might not be immediate action on property cooling measures, the analyst notes.
&ldquo Furthermore, growth in private property prices is moderating and remains reasonable in relation to overall wealth and income levels. Hence, unless there are unexpected surges in property prices, it is unlikely that additional cooling measures will be implemented in the near term,&rdquo says Tan.
Incorporating the 2024 data from the Urban Redevelopment Authority (URA) and the Home Development Board (HDB), OIR has updated its model for FY2025 and increased our free cash flow (FCF) assumptions by 6.5% and 6.6% for FY2025 and FY2026, respectively.
&ldquo We also raised our terminal growth rate from 1% to 2% to align more closely with Singapore&rsquo s GDP growth. As a result, our fair value estimate has increased from 96 cents to $1.14,&rdquo says Tan.
He expects PropNex to continue being a &ldquo solid dividend yield play&rdquo , with estimates of a dividend payout of 90%, resulting in dividend yields of 5.6% and 6.0% for FY2025 and FY2026, respectively. Additionally, 2025 marks PropNex&rsquo s 25th anniversary, which could lead to the potential payment of special dividends this year, Tan says.
Similarly, UOB Kay Hian' s Adrian Loh has raised his target price to $1.18 from 98 cents previously, also citing " sequentially strong earnings in 2H2024 into 2026" .
Loh notes that PropNex' s market share continues to be high at around 50% new launches in the past few months. On top of that, the long waiting periods for build-to-order (BTO) public housing and the inability of the authorities to match supply and demand in the HDB segment has led to buyers opting for reasle units instead.
As such, he raises his earnings estimates for 2025 to 2026 by 2% to 3% on the back of higher transaction amounts for new launches, and slightly higher transaction number for the HDB resale segment.
" We highlight that new launches in the past weekend saw strong sell-through at very robust prices, The Orie sold 86% of the project on its opening weekend at an average price of $2,704 per sq ft (psf) while Bagnall Haus sold 63% at $2,490 psf," says Loh.
Unlike OIR' s Tan, Loh highlights the government implementing new cooling measures as a near term risk which he says has increased. They may take the form of higher seller stamp duties (SSD), extending the number of years that SSG is in effect or tightening the total debt servicing ratio for borrowers.
He keeps his " buy" rating with a higher price to earnings (P/E) ratio-based target price of $1.18 due to his earnings per share (EPS) upgrade and higher PE multiple.
" We have raised our target PE multiple to 14.6 times, which is 1 standard deviation above the company&rsquo s average P/E since 2021 and pegged it to our 2025 EPS estimate, as well as including our forecast cash balance as at end-2025. In our view, the company could trade at higher multiples given its asset-light business model, which on our estimate generates an ROE of 37%-38% in 2025-2026. With minimal capex on an annual basis, we forecast that PropNex will generate $60 million to $65 million in free cash flow per year in 2025-2026," Loh ends.
DBS upgrades PropNex and APAC Realty to &lsquo buy&rsquo amid strong pipeline of new launches in 2025
DBS Group Research has upgraded its calls on PropNex and APAC Realty to &ldquo buy&rdquo from &ldquo hold&rdquo as both counters are tipped to benefit from a strong pipeline of new launches in 2025.
PropNex is the largest property agency in Singapore with around 12,000 agents accounting for 34% of the country&rsquo s market share. APAC Realty is one of the leading players in the real estate brokerage industry. It has a presence in 17 Asia Pacific (APAC) countries and one of the largest brand footprints in Asia through its ERA franchise network.
&ldquo We anticipate a rebound in overall volumes in 2025, driven by new sales returning to [around] 8,000-8,500 units annually. This is supported by stable property prices, with fluctuations expected in the range of +1% to +2%,&rdquo say Derek Tan and Tabitha Foo in both reports dated Jan 6.
The rebound will largely be driven by three main factors: lower mortgage rates homeowners, upgraders and permanent residents buying homes for themselves as well as the introduction of a wider array of projects with strong attributes.
In 2025 to 2026, the analysts also see private resale transactions remaining &ldquo stable&rdquo at 13,500 to 14,000 units. Sell-through rates could average between 30% to 50% during launch weekends, which could support a gradual turnaround in profitability for both agencies.
&ldquo The group&rsquo s market share in private new sales and resale has increased to 56%-60%, significantly higher than pre-pandemic levels,&rdquo note Tan and Foo for PropNex specifically, adding that these figures indicate that one in every two sales is made by a PropNex agent. With this in mind, a potential increase in market share as PropNex adds to its sales force, would present upside potential to the analysts&rsquo estimates.
Tan and Foo have increased their target price estimates for both PropNex and APAC Realty to $1.15 and 50 cents from 95 cents and 48 cents respectively.
Their new target price for PropNex is pegged to 15 times the company&rsquo s P/E on rolled-forward and revised FY2025 earnings. PropNex&rsquo s FY2025 earnings estimates were lowered to account for lower overall sales and margins assumptions.
&ldquo We have moved the multiple towards +1 standard deviation (s.d.) (versus [a] five-year average of 12 times), as the market and the company&rsquo s profitability are at an inflexion point,&rdquo the analysts write. &ldquo [PropNex&rsquo s] FY2025/FY2026 dividend yield of 7.7% (80% payout ratio) is attractive, with potential upside if the group decides to distribute its cash reserves (16 cents per share) to shareholders.&rdquo
Meanwhile, APAC Realty&rsquo s new target price represents a higher P/E multiple of 13 times in line with its four-year historical average on rolled-forward FY2025 earnings.