APAC Realty (SGX:CLN)'s FY23 revenue declined 21% y-o-y to S$557.3m, which was in line with expectations. It was primarily attributable to a 47.8% fall in revenue from new homes (which have much higher margins than resale & rental), while expenses rose 10.8% y-o-y during the year.
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FY23 also saw modest non-operating income, compared to a non-operating expense recorded a year ago.
Consequently, net profit fell 60% y-o-y to S$11.8m and net margin dipped significantly to 2.1% for the year compared to 3.8% for FY22.
HDB rental volumes emerged as the only bright spot.
Transaction volumes for both new homes and resale experienced a y-o-y decline on the back of macroeconomic uncertainties and higher interest rates.
For the rental market, transaction volumes for the private segment also dipped. In contrast, HDB rental transaction volumes grew y-o-y, which could be supported by private homeowners who have to observe a 15-month wait-out period before being eligible to acquire a resale HDB as well as a “trade-down” to HDB rentals given the elevated rental prices after the pandemic, though we are starting to see signs of easing.
Prices saw strong momentum in 4Q23.
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APAC Realty (SGX:CLN)'s FY23 revenue declined 21% y-o-y to S$557.3m, which was in line with expectations. It was primarily attributable to a 47.8% fall in revenue from new homes (which have much higher margins than resale & rental), while expenses rose 10.8% y-o-y during the year.
Finance costs came in higher than expected amid the heightened interest rate environment.
FY23 also saw modest non-operating income, compared to a non-operating expense recorded a year ago.
Consequently, net profit fell 60% y-o-y to S$11.8m and net margin dipped significantly to 2.1% for the year compared to 3.8% for FY22.
HDB rental volumes emerged as the only bright spot.
Transaction volumes for both new homes and resale experienced a y-o-y decline on the back of macroeconomic uncertainties and higher interest rates.
For the rental market, transaction volumes for the private segment also dipped. In contrast, HDB rental transaction volumes grew y-o-y, which could be supported by private homeowners who have to observe a 15-month wait-out period before being eligible to acquire a resale HDB as well as a “trade-down” to HDB rentals given the elevated rental prices after the pandemic, though we are starting to see signs of easing.
Prices saw strong momentum in 4Q23.
There were three project launches in the last quarter of 2023, which saw encouraging sell-through rates and achieved >S$2,000psf, on average.
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Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
