APAC Realty's 9M net profit more than doubles on new home sales

STRONG sales of new homes boosted APAC Realty's net profit to S$26.1 million in the first 9 months of 2021, more than double the S$10.9 million bottom line a year ago.

The mainboard-listed company's 9M revenue likewise more than doubled to S$543.8 million. New home sales alone generated S$211.3 million in brokerage revenue, up 177 per cent year-on-year. Resale and rental brokerage revenue stood at S$325.7 million, an increase of 88 per cent.

The robust transaction volume in both segments was driven mainly by local buyers, young couples and HDB upgraders, said APAC Realty in its quarterly business update on Friday. Buying activity comes on the back of strong global liquidity and a low interest rate environment.

Looking ahead, APAC Realty plans to continue its long-term regional expansion, even as Covid-19 continues to "weigh heavily" on regional real estate markets.

ERA Malaysia, set up in September last year, has amassed over 500 sales agents. Likewise, the company has added over 1,200 salespersons in Vietnam in the first 3 quarters of this year.

APAC Realty also sees growth in its Indonesian business, with the 9M revenue of ERA Indonesia expanding by about 40 per cent. ERA Indonesia was listed on the Indonesian Stock Exchange in June.

The outlook is more cautious in Thailand, where the property market remained slow into Q3. Nevertheless, APAC Realty hopes to capture fresh demand as the country opens up its borders.

Overall, APAC Realty anticipates "even stronger growth" in 2022. Its shares closed at S$0.835 on Friday, up 0.6 per cent.