Apac Realty is now offering an “attractive” 7% FY2026 yield (at an 80% dividend payout), says Natarajan. The group’s net cash position and limited capex and investment requirements present room for special dividends, he adds.
Thus, Natarajan has increased his target price for Apac Realty to 71 cents from 70 cents previously.
More new launches next year
The latest Singapore government land sales (GLS) programme points to a steady increase in residential supply that will flow through into higher 2027 new launches, says Natarajan, amid firm primary market demand.
At 4,745, the number of residential units on the Confirmed List of the 2H2026 GLS programme is 4% higher h-o-h. The total full-year confirmed list supply of 9,320 units is more than 50% higher compared to the 10-year average.
For context, the Confirmed List denotes firm new supply while Reserve List sites are only made available if a developer triggers it by submitting an acceptable minimum bid.
Overall, Natarajan expects private new home sales to be at 9,000-10,000 units for each of 2026 and 2027.
See also: Apac Realty's FY2025 earnings up 184.9%
This is the key earnings driver for Apac Realty’s subsidiary ERA Singapore, with margins double that of the resale segment, says Natarajan.
Meanwhile, for the resale market, the analyst expects a slight y-o-y decline in volume due to a demand shift to primary market.
Apac Realty’s commercial resale and leasing segment should see a slight positive y-o-y growth, says Natarajan. “Apac Realty’s overseas market segment is likely to stay breakeven in FY2026 amid macroeconomic challenges in key markets Thailand, Indonesia, Malaysia, and Vietnam, while its recent Hong Kong entry could prove timely. •
‘More productive agents’
ERA Singapore’s local agent count has risen 3% year to date to 8,699. “We expect artificial intelligence (AI) to cause limited disruption to the sector as we see a good value-add in engaging agents and time savings in Singapore’s fast-paced environment,” says Natarajan.
Apac Realty management has been placing heavy emphasis on equipping agents with AI tools and adding more interactive features to enhance agent productivity, he notes.
ERA Singapore’s overall market share remains stable, adds the analyst, at around 34% of total Singapore home sales transactions in 2025.
After factoring in higher primary sales volumes, Natarajan tweaks his FY2027-2028 net profit forecasts by 2% higher each.
As at 2.48pm, shares in Apac Realty are trading flat at 55 cents. Apac Realty shares are down 6.8% year to date but up some 44% over the past year.
