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PropNex Q4FY18 profit down 58%; declares dividends of 3.5 S cents per share

HOMEGROWN real estate agency PropNex reported a near 58 per cent year-on-year drop in Q4 FY2018 net profit to S$1.83 million as sales were hurt by the cooling measures implemented in July last year.

Revenue was around 16 per cent lower at S$83 million as revenue recognition for the number of units transacted in Q3 FY2018 - which slumped on the back of the cooling measures - took place in Q4 FY2018. Earnings per share for the quarter under review worked out to 0.49 Singapore cent per share, down from 1.41 Singapore cents a year ago.

For the full year, net profit was up 19.3 per cent to S$19.41 million in line with higher topline. Revenue for FY2018 jumped 30 per cent to S$431.54 million, led by higher commission income from agency services and project marketing services. As at Feb 24, PropNex’s salesforce had grown to 7,513, up from 6,684 as at Jan 1, 2018. 

The agency has declared a final dividend of 1.5 Singapore cents per share and a special dividend of two Singapore cents per share, subject to approval at an upcoming annual general meeting.

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Separately, PropNex also announced that it is launching a new service, HDB Auction, as an alternative option for HDB owners to market their public housing units. Dubbed as an industry first, the service will allow the buying and selling of HDB flats in open public tender, subject to the reserve price. Successful bidders have to comply with HDB's policies and procedures.

Ismail Gafoor, chief executive officer of PropNex, said that the value-added service will enable greater transparency, while curtailing long negotiation periods. He expects that the greater transparency will help especially in cases where the owners are in conflict or for properties under estates where trustees are to sell the HDB property at the highest price.

He went on to highlight: "There will be a total of 30,000 HDB flats that would have fulfilled the minimum occupancy period in 2019, compared to an average of 10,000 units in the last 10 years, thus increasing the supply side in the HDB resale market."

PropNex's first HDB Auction will be held on April 5 at its office at HDB Hub.