Apac Realty Q1 net profit slides 67% to S$3 million on lower transaction volume

REAL estate services provider Apac Realty : CLN 0% posted a 67 per cent fall in net profit to S$3 million for the first quarter ended Mar 31, from S$9.1 million the year before.

Revenue for the quarter fell 29 per cent to S$121.4 million, from S$171.1 million in the corresponding year-ago period, the mainboard-listed company said in a business update on Friday (May 12). This was due to a decrease in transaction volume of residential properties in the new homes segment, as new project launches were limited in the last six months

Apac Realty’s real estate brokerage services are operated by ERA Realty Network, under the ERA franchise.

By segment, new homes brokerage revenue declined 49 per cent on the year to S$39.4 million, from S$77.2 million the year before.

Meanwhile, resale and rental brokerage revenue declined 12.7 per cent to S$80.3 million, from S$92 million previously.

So far, Apac Realty has launched seven residential projects, with another 20 in the pipeline for 2023.

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The company cited the slowdown in global economic activity, possible turmoil in the overseas banking sector, a high interest rate environment, and the recent property cooling measures as concerns for 2023.

Shares of Apac Realty closed flat at S$0.625 on Friday, before the results were announced.