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APAC Realty Q1 net profit slides 70% to S$1.78m on lower transaction volume
APAC Realty's net profit for the first quarter ended March 31 sank 70 per cent year-on-year to S$1.78 million on the back of lower transaction volume following the cooling measures in July last year.
Revenue fell 26.4 per cent to S$77.41 million owing to lower brokerage income from resale and rental of properties and a decrease in brokerage income from new home sales. Earnings per share was 0.49 Singapore cent, down from 1.67 cents a year ago.
APAC Realty holds the franchise rights for ERA for 17 countries in the Asia-Pacific.
As at May 13, ERA has secured marketing agent appointments for 42 projects with approximately 16,500 new home units scheduled for sale in FY2019, it said. ERA's agent network in Singapore rose to 6,682 agents as at March 31, up 9.8 per cent from 6,085 agents as at March 31 last year.
Commenting on the outlook for the Singapore market, Jack Chua, chief executive officer of APAC Realty, said: "Looking at URA's quarterly industry statistics, we believe that the property cooling measures implemented by the government in July 2018 have proven to be effective. With the ABSD and LTV restrictions in place, demand for Singapore residential properties will continue to remain weak and we expect the operating environment to remain challenging over the next few quarters.
"In our endeavour to build a business with sustainable income growth and resilience through market cycles, we looked beyond the shores of Singapore and expanded in Indonesia and Thailand in February 2019. While these businesses are stable and operate in markets of fast-growing economies, rising standards of living, and have an aggregate population of over 335 million, it will take time for us to realise synergies and grow their contribution to the group."
The counter closed at S$0.545 on Monday, down 1.5 cents.