APAC Realty Q1 net profit more than doubles to S$7.5m

APAC Realty's net profit for the first quarter ended March 31 more than doubled year on year to S$7.5 million, owing to revenue gains from an increase in transaction volumes in the new-home and resale segments.

This was driven mainly by local buyers, young couples and HDB upgraders amid strong global liquidity and a low-interest-rate environment, said APAC Realty in its first-quarter business update on Wednesday.

Revenue was up 70 per cent to S$153.1 million, led by an increase in new home revenue, which more than doubled to S$54.3 million. Resale and rental revenue rose 49 per cent to S$96.4 million.

APAC Realty holds the franchise rights for ERA for 17 countries in the Asia-Pacific.

Of all residential transactions here, ERA achieved a market share of 28.2 per cent, up from 27.5 per cent a year earlier. It also accounted for 32.2 per cent of new-home sales, an improvement from the 29.6 per cent over the same period last year.

This is as Singapore's property market expanded, with transaction volumes in the primary private residential market growing 63 per cent to 3,493 units year-on-year.

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The private residential resale market more than doubled to 4,607 units. The HDB resale market reported an increase of 29 per cent to 7,581 units.

As at May 11, ERA had secured marketing agent appointments for 23 projects for this year - 10 projects have been launched, with 13 more to come later this year.

The group said that it continues to take a long-term approach to its regional expansion strategy, and that Covid-19 continues to weigh heavily on the real estate markets in Indonesia, Thailand, Vietnam and Malaysia.

"However, the group remains positive on the long-term post-Covid-19 outlook, given the established ERA brand, strong reputation and quality sales teams on the ground," it said.

Shares of APAC Realty ended Wednesday at $0.49, up S$0.01 or 2.1 per cent.