PROPNEX : OYY 0% posted an 18.4 per cent drop in net profit to S$22.1 million for its first half-year ended June, from S$27 million in the previous corresponding period. This came as the real estate services group’s revenue fell 22.9 per cent to S$364.3 million from S$472.3 million, mainly due to a decrease in commission income from both its agency services and project marketing services segments, it said on Thursday (Aug 10).

Commission income from agency services declined 13.3 per cent to S$248.7 million, while commission income from project marketing services dropped 38.1 per cent to S$113.5 million in the first half-year.

Earnings per share for the half-year were S$0.0298, lower than the S$0.0365 for H1 last year.

The board declared an interim dividend of S$0.025 per share for the half-year, down from an adjusted dividend per share of S$0.0275 for the same period last year. The dividend will be paid on Sep 4, after book closure on Aug 24.

PropNex executive chairman and chief executive Ismail Gafoor said the property market is typically slower in the first half of the year.

“This year, sentiment in the property market was compounded by two cooling measures introduced in H1 (February Budget measures and April cooling measures), and elevated interest rates as high as 4.5 per cent in the beginning of 2023,” he added.

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The group is more confident when it comes to the second half of 2023, with interest rates easing below 3.5 per cent and the launch of around 33 new projects.

It estimated overall private home prices to grow between 4 per cent and 5 per cent, with developers’ sales to range from 7,000 to 7,500 units, excluding executive condominiums.

PropNex shares closed on Tuesday 1.9 per cent or S$0.02 down at S$1.04.