PropNex Limited has posted record revenue, net profit and dividend for the 1HFY2025 ended June.
Net profit more than doubled to $42.3 million, 122.4% up from $19 million in the 1HFY2024 thanks to higher revenue and gross profit.
Earnings per share (EPS) also surged by 122.4% y-o-y to 5.71 cents.
For the six months, revenue rose by 73.3% y-o-y to $598.9 million mainly due to higher commission income from agency services and project marketing services. The higher commission income stemmed from the higher number of transactions completed in the period.
Gross profit also increased by 97.9% y-o-y to $66.2 million on the back of the higher revenue.
As a result of the record results, PropNex has proposed an interim cash dividend of 5 cents per share, reflecting a payout ratio of 87.6% of its earnings and the highest on record. Based on its share price as at June 30, the dividend represents a yield of 4.6%.
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In the 2QFY2025, private residential sales transactions, excluding executive condominiums (ECs) fell by 29.38% to 5,128 units from 7,261 units in the 1QFY2025. This was attributed to fewer launches given that developers launched 1,520 new units in the quarter, down from the previous quarter’s 3,139 units.
Excluding ECs, developers sold 1,212 new units in the 2QFY2025, 64.1% lower from the 3,375 units transacted in the quarter before.
On a y-o-y basis, however, new home sales were up by 67.2% from 725 units transacted in the 2QFY2024.
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Resale private homes saw 3,647 transactions, up 2.3% from the 3,565 units transacted in the 1QFY2025. Due to the limited number of new launches and weaker developers’ sales, private resale transactions made up 71.1% of the total private homes sold in 2QFY2025, bringing PropNex’s total units sold to 7,212 in the 1HFY2025, 11.1% higher y-o-y.
In 2QFY2025, 7,102 HDB flats were resold, 7.8% higher than the 6,590 resale flats sold in 1QFY2025. In 1HFY2025, a total of 13,692 HDB flats were resold, 5% lower y-o-y.
“As we celebrate our 25th anniversary in 2025, I am proud to report record-breaking revenue and net profit for 1HFY2025, underscoring PropNex’s continued growth and strong market position,” says Ismail Gafoor, executive chairman of PropNex.
“Building on the momentum from an exceptionally robust 4QFY2024, our salespersons delivered a 7% year-on-year increase in sales and leasing transactions in 1HFY2025, despite challenging macroeconomic factors such as trade tariffs and regional tensions in the Middle East. We have established a solid foundation for the remainder of this year, with upcoming market launches expected to further drive our growth,” he adds.
Looking ahead, the group says it remains optimistic about private home sales amid a gradual recovery in market sentiment and buying appetite after heightened uncertainties from the Liberation Day tariffs announced in April.
It adds that it believes private housing demand may be boosted by the “sensitive pricing of homes, moderation in mortgage rates, potential wealth effect from the stock market rebound and the still tight labour market” despite persistent downside risks.
The recent government land sales (GLS) tenders also saw improved participation from developers, reflecting continued confidence in the market.
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In 2025, PropNex is expecting overall private home prices to increase by a “modest” 3% to 4% thanks to resilient demand, healthy household balance sheets, easing interest rates, and an attractive pipeline of new launches.
It expects developer sales to range between 8,000 to 9,000 units, excluding ECs, while private resale volume is anticipated to reach between 14,000 to 15,000 units.
At the same time, demand for resale HDB flats is expected to be “relatively stable” with “moderate price gains” in 2H2025 due to the stricter loan-to-value (LTV) limit of 75% for HDB home loans. Concerns about affordability and price resistance, as well as new build-to-order (BTO) flats with shorter waiting times and sale of balance flats are also contributing factors.
In 2025, PropNex forecasts HDB resale prices to increase by 4% to 5% with resale volume of around 27,000 to 28,000 flats.
Kelvin Fong, PropNex’s new CEO, says he expects new home sales to rebound in the 3Q2025 due to a “substantial pipeline of launches” with over 3,400 new units, excluding ECs expected to come onstream. Fong’s appointment was announced on July 15.
“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,” he adds. “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.”
As at Aug 5, PropNex’s number of agents rose to 13,618 up from 12,636 as at Jan 1.
The dividend is payable on Sept 10.
Shares in PropNex closed at $1.61 on Aug 11.
