APAC Realty reported Monday its first quarter net profit dropped 70 percent on-year to S$1.78 million amid a “tepid” property market in Singapore after the government implemented fresh cooling measures in July.
Total revenue for the quarter ended 31 March dropped 26.4 percent on-year to S$77.41 million, the property broker said in a filing to SGX.
Real estate brokerage fees and related services posted a 26.5 percent on-year drop in revenue to S$76.21 million, as resale and rental of properties contribution fell 25.4 percent to S$51.0 million, said APAC Realty, which holds the exclusive ERA-brand franchise rights for 17 Asia-Pacific counties.
In addition, revenue from new home sales fell 29.9 percent on-year to S$23.9 million in the quarter, the company said.
Marketing and promotion expenses surged 195.3 percent on-year to S$900,000 in the quarter, on increased marketing activities and incentives in the period, APAC Realty said.
The company pointed to Urban Redevelopment Authority (URA) data showing private residential transactions in the first quarter dropped nearly 30 percent on-year to 3,743 units.
“Demand for Singapore residential properties will continue to remain weak and we expect the operating environment to remain challenging over the next few quarters,” Jack Chua, executive director and CEO of APAC Realty, said in the statement.
Correction: This item has been corrected to reflect the real estate brokerage fees and related services revenue was S$76.21 million.
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