PropNex plots its next act beyond Singapore residential property

[SINGAPORE] What comes after capturing nearly two-thirds of Singapore’s residential property transactions? For PropNex , the answer increasingly lies outside the housing market, starting with the industrial sector. 

In an interview with The Business Times, executive chairman Ismail Gafoor said the agency rolled out an “Industrial 2.0” training programme in early 2026 and assembled a team of agents to specialise in the segment. 

The move comes ahead of what he estimates could be a pipeline of more than 2,600 industrial units in 2027, assuming a unit is 150 sq m in size. 

“We also noticed that Singaporeans are more open to industrial projects based on their yield return,” he said. 

It is still early days for the agency, but Gafoor said that PropNex has already gained traction at several recent launches.

PropNex agents represented 46 per cent of transactions at Gate+, a new B2 industrial development in Tuas Mega Port that launched in May; in July, the agency captured 55 per cent of sales at another launch, Generations @ Tannery in Aljunied. In August, it accounted for 61 per cent of sales at Space Nova, a new B1 industrial project in Tai Seng. 

Beyond industrial property, the group also sees room to grow its capital markets, valuation and leasing businesses – segments in which it has a lower market share. 

The en bloc market, in particular, could be promising, following recent reforms for ageing estates and commercial sites, said Gafoor.  For instance, developments aged 40 to 59 years will require 70 per cent consent for a collective sale, down from 80 per cent. Those aged 60 years and up will need just 65 per cent. 

“These are areas where we have started to put our seeds to grow,” he said. “In the next five years and beyond, I hope to strengthen them to have a better market share and revenue.”

“Once we put our mind and focus and train the right people, within three to five years, we tend to be among the top three market players in that segment,” he added. 

New markets and old

PropNex’s ambitions also extend beyond Singapore. 

Currently, its overseas franchising business – while growing with a presence in Malaysia, Indonesia, Vietnam, Cambodia and Australia – accounts for under 5 per cent of its earnings. 

It aims to expand further in the Asia-Pacific, including branching beyond Melbourne into other Australian cities, as well as venturing into Bangkok, Thailand. 

“I’m still looking for the right partners with a similar alignment to bring their business scale using our brand, tech and training,” he said. “(But) by the turn of the decade, the franchise business revenue should be a significant vertical.” 

At home, Gafoor believes there is still untapped potential in its core residential market. 

The group aims to be involved in more than 70 per cent of Singapore’s residential transactions by 2030, up from about 64 per cent in H1 2026.

It also intends to grow its salesforce to 20,000 agents, from slightly over 14,600 now. He believes it to be an attainable target, given that the agency has added more than 1,000 agents a year on average in the last five years. 

But Gafoor stressed that the headcount is ultimately a means to an end. 

In July, the government announced new rules aimed at improving transparency and raising standards in Singapore’s real estate agency industry. This includes requiring agents to complete at least three transactions over three years, or pass a refresher examination, to remain registered. 

This could result in some agents dropping out, but Gafoor is unfazed. 

“My desire for 20,000 salespeople is to capture market share,” he said. “If I can capture an increased market share with 18,000 agents … it doesn’t matter to me.” 

Strong reserves

As at end-June, PropNex had S$130.2 million in cash and cash equivalents. 

Gafoor said the sizeable buffer gives investors greater confidence that the group can weather a downturn, while giving it “greater strength to focus on (its) core business and look for right opportunities”. 

A merger or acquisition would be difficult, given PropNex’s already substantial market share, he said. Instead, the group could look at technology partnerships, consultancy or other complementary business verticals.

“Whatever I’m looking at must add value to my agents and our salesforce in terms of productivity,” he said.  

The focus would largely remain local, although PropNex would not rule out overseas opportunities that fit its strategy, he added. 

Gafoor identifies two potential key risks for PropNex: mortgage rates approaching 4 per cent, which could cause some buyers to delay purchases, and a shortage of new private-home supply. 

Both scenarios seem unlikely, he said. A significant rise in borrowing costs would likely require a sharp increase in global rates, while constraining land supply amid continued population growth could put excessive upward pressure on home prices. 

“That’s no good for Singaporean upgraders, so there will be a balance,” he said.

Barring these risks, Gafoor remains upbeat on the group’s near-term prospects, citing its larger salesforce, Singapore’s continued population growth and the generally positive economic environment. 

Taken together, Gafoor expects the next two years to be “extremely exciting”. 

“The supply and current policies favour greater mobility of real estate transactions, and with our growing salesforce and increased data, we are likely to capture a stronger market,” he said. 

Staying relevant in the AI era

In the longer term, technology could pose a more fundamental challenge to the traditional property agent. 

With artificial intelligence and greater transparency of information allowing consumers to do more themselves, Gafoor acknowledged that agents who lack knowledge, tech capabilities or marketing skills will find it harder to justify their role. 

PropNex therefore continues to invest in agent training, proprietary data and digital platforms to help its salesforce remain useful to buyers and sellers. 

“I don’t see these things, at least in the five years, derailing the salesperson’s current role,” Gafoor said. Beyond five years, however, he is less certain. 

“(But) as long as PropNex remains, it must remain relevant. If we cannot provide that value proposition, then our value will be diminished.”

Part of that involves maintaining professional standards – an issue that has received growing public attention.

In March, for instance, a couple sued another agency, one of its agents and a law firm for S$731,212, alleging negligent misrepresentation and breach of duty. This was just one in a string of lawsuits in the last year involving property buyers suing real estate agencies, their agents and law firms.

Despite these recent controversies and other instances of poor conduct, Gafoor argued that the industry’s professionalism has improved on the whole in the last 15 to 16 years, especially since the Council of Estate Agencies was established. 

He added that “the bar (will go) higher and higher” as consumers become more informed, although isolated cases could still be amplified on social media and tarnish the wider profession. 

“We do not want one rotten apple to spoil the entire crate of 14,600 salespeople (in PropNex),” he said. “That’s why we are very harsh and hard on our own salespeople who do not toe the line.” 

Gafoor cited the 2008 decision to terminate 2,800 agents in a single day – over one-third of its agents then. They had refused to comply with PropNex’s requirements for professional indemnity insurance and refresher training. 

“(They) didn’t take action because they said it was not mandated by the regulator, and that it was not industry practice,” he said. “We let (them) go.” 

For Gafoor, such decisions come with the territory of being a market leader. 

“We have a vested interest to protect the industry and the many lives that depend on being in PropNex for their livelihood,” he said.