PropNex posts 2Q21 net profit more than doubled as transactions grew

Singapore two-dollar bills

Singapore real estate agency PropNex reported Wednesday its second quarter net profit climbed 134.5 percent on-year to S$18.18 million on a higher number of transactions amid improvements in the Covid-19 situation and the economy.

Revenue for the April-to-June quarter increased 147.2 percent on-year to S$260.48 million, the agency said in a filing to SGX.

“Despite the tightened measures under the Phase 2 (Heightened Alert) (P2HA) which disrupted developers’ launch activities and property
viewings in the resale market in the second quarter, transaction volumes remained healthy,” PropNex said in the statement.

PropNex pointed to Urban Redevelopment Authority (URA) and Housing and Development Board (HDB) data showing overall private home prices rose for the fifth consecutive quarter and the public housing resale price index climbed to just 2 percent below its 2013 peak.

For the first half, PropNex posted net profit of S$34.36 million, up 115 percent on-year, on revenue of S$481.06 million, up 100 percent on-year, mainly on an increase in commission income from agency services and project marketing services.

PropNex declared an interim dividend of 5.5 Singapore cents a share.

The company issued an upbeat outlook.

“The Singapore residential market has proven to be resilient. Barring unforeseen circumstances, home sales across all segments (private new home, private resale and HDB resale) in 2021 are expected to outperform 2020,” PropNex said.

“The current pandemic situation and the re-introduction of P2HA may pose some uncertainty for developers in terms of launch activities over the next quarter, but PropNex does not expect it to put a dent on home demand nor impact prices significantly. The healthy demand for homes will continue to support prices, amid the gradual economic recovery and positive market outlook,” it added.