APAC Realty Q1 FY2022 earnings grow 20 per cent even as transactions fall

MAINBOARD-LISTED real estate services provider APAC Realty reported a 20 per cent growth in net profit to S$9 million for Q1FY2022 ending Mar 31 from S$7 million a year prior, in a business update released after market close on Friday (Jun 17).

The growth was in tandem with a 11.8 per cent jump in revenue for Q1 FY2022, which was driven by brokerage fees for new homes transactions, which grew 42.2 per cent year on year (y-o-y) to S$77.2 million. This was offset by a slight decline in resale and rental transactions of 4.6 per cent to S$96.4 million.

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

In the backdrop of APAC Realty’s results were declining transactions across the board in Singapore’s property market. In Q1 FY2022, new homes sales declined 52.8 per cent to 1,956 units from 4,140 units. The resale market also saw a decline of 14.2 per cent from 12,188 units to 10,452 units. The rental market also saw a slight drop of 6.8 per cent from 34,722 units to 32,377 units.

This has resulted in fewer residential transactions excluding rental for APAC Realty. The company reported a 23.9 per cent y-o-y decline in Q1 FY2022 from 6,189 to 4,797 transactions, mirroring the market’s 24 per cent decline.

Currently, APAC Realty has launched 5 residential projects, with another 20 more residential projects in the pipeline for 2022.

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Shares of APAC Realty closed down 1.7 per cent to S$0.01 to S$0.595 on Friday.