PropNex H1 net profit down 3.1% at S$40.9 million; interim dividend unchanged

[SINGAPORE] Real estate agency PropNex posted a 3.1 per cent drop in net profit to S$40.9 million for the first half ended Jun 30, from S$42.3 million in the previous corresponding period.

Revenue grew 0.7 per cent to S$603 million from S$598.9 million, driven by higher commission income from agency services, the group said on Thursday (Aug 13).

Commission income from agency services rose 6.9 per cent to S$360.5 million from S$337.2 million in H1 2025, supported by healthy transaction activity in the resale and leasing markets.

This was partially offset by a 7.8 per cent decline in project marketing services’ commission income to S$238.4 million from S$258.5 million previously, amid fewer new launches.

Earnings per share stood at S$0.0553, down from S$0.0571 in the year-ago period.

The company declared an interim dividend of S$0.05 a share for the half year, unchanged from the same period the year before. It will be paid on Sep 11, after books closure on Aug 26. The payout ratio represents 90.4 per cent of net profit.

PropNex executive chairman Ismail Gafoor noted that the H1 2026 performance broadly reflected sales secured between October 2025 and March 2026, due to the lag between transactions and revenue recognition. This is a period that is typically slower for new launches due to the year-end and Chinese New Year holidays.

The group expanded its market share by transaction volume to 64.3 per cent in H1 2026, up from 60.6 per cent in FY2025. Market share across all property segments grew, including new launches (from 48.9 per cent to 52.5 per cent) and Housing & Development Board (HDB) resale (from 63.2 per cent to 68.1 per cent).

PropNex expects private home prices to grow moderately by 3 to 4 per cent for the full year of 2026, with developers’ sales projected at around 9,000 units excluding executive condominiums, and private resale transaction volume expected between 14,000 and 15,000 units.

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For the public housing market, HDB resale prices are expected to rise by up to 1 per cent in 2026, with resale volume projected at 26,000 to 27,000 units.

Kelvin Fong, CEO of PropNex, said: “Latest trends indicate that home purchases are mainly led by locals with genuine housing needs rather than speculation, while structural tailwinds, including population growth, immigration policy, lower interest rates and rising incomes, remain firmly in place.”

PropNex shares ended Thursday 3.7 per cent or S$0.07 lower at S$1.82.