- PropNex's 2H24 PATMI of S$21.9m (-14.9% y-o-y, +15.4% h-o-h) came in below market expectations, which took FY24 earnings to S$40.9m (-14.4% y-o-y).
- Nonetheless, we note that developers tactically deferred their mega new launches to 4Q24 to capitalise on the FED interest rates cut and buyers’ pent-up demand.
1H25 likely to be profit peak on delayed recognition
- - Read this at SGinvestors.io -
- The surge in new project launches made 4Q24 an unusually strong quarter, with nearly half of its total private new home transactions for 2024 occurring in this period. As revenue is typically recognised 3-4 months later, this means the group’s half-yearly earnings could potentially peak in 1H25, notwithstanding the current red-hot primary market.
Secondary market remains vibrant
- - Read this at SGinvestors.io -
- Meanwhile, the HDB resale market could see price increases of 5-7%, with volumes reaching 29-30k units pa. This demand is driven by fewer 5-year minimum occupation period flats entering the market, alongside continued interest from buyers with urgent housing needs, unsuccessful BTO applicants, and budget-conscious families.
Will there be more property cooling measures?
- Read more at SGinvestors.io.
