APAC Realty profit falls 57% in Q2 to S$3.3m

APAC Realty, Singapore's largest real estate agency, has posted a net profit of S$3.3 million in the second quarter, down 56.8 per cent from the same period a year earlier.

Revenue from real estate brokerage fees and related services fell 30 per cent to S$84.8 million in the three months ended June 30.

This was due mainly to the 29.2 per cent decrease in brokerage income from resale and rental of properties to S$60.5 million. Brokerage income from new home sales fell 32.9 per cent to S$23 million.

Executive chairman and chief executive Jack Chua said in a results filing on Monday that buyer demand in the first-half was weighed down by the "regulatory overhang" in the Singapore property market and a muted economic outlook.

"Private resale residential transactions declined by almost half from 8,567 units sold in the first half of 2018 to 4,321 units sold in the first half of 2019, reflecting the effect of the property cooling measures implemented by the government in June 2018," he said.

"While this has resulted in a challenging first half for real estate brokerage businesses in Singapore, we maintain our long-term positive view on the Singapore residential market and will continue to keep our focus on executing our regional growth strategy well and maintaining our industry market leadership."

An interim dividend of 0.75 Singapore cents will be paid on Sept 9, representing 53 per cent of the group's first-half net profit. Last year, an interim dividend of two Singapore cents was declared.

Earnings per share fell 56.7 per cent to 0.94 Singapore cents, from 2.17 Singapore cents in the second quarter last year.

Net asset value per share was 39.2 Singapore cents as at June 30, from 40.3 Singapore cents as at Dec 30 last year.

APAC Realty shares fell 2.5 Singapore cents or 4.55 per cent to S$0.525 before results were announced.