In recent times, the demand for condominiums in Singapore has been on the rise, primarily due to the limited availability of land. As a small island country experiencing population growth, Singapore faces challenges in finding suitable land for development. As a result, the government has implemented strict land use regulations, and the real estate market has become extremely competitive, driving property prices to soaring heights. As a result, investing in real estate, particularly in the form of condos, has become a lucrative option with potential for significant appreciation in value. The continuous influx of new condo launches has further fueled the demand for condos in Singapore, making it a sought-after investment opportunity. New Condo Launches continue to attract a strong demand in the Singapore market.
PropNex, Singapore’s biggest real estate agency, announced a decrease of 14.9% y-o-y in its earnings for its second half of the 2024 financial year, which ended on Dec 31, 2024, bringing its full-year earnings to $40.9 million, a 14.4% decline from the preceding financial year, FY2023.
The company’s revenue also saw a dip of 6.6% in FY2024 compared to FY2023, mainly due to the relatively subdued property market. However, in celebration of its 25th anniversary, PropNex plans to pay a special dividend of 2.5 cents per share, in addition to a final dividend of 3 cents, bringing its total dividend payout for FY2024 to a record high of 7.75 cents. This represents a payout ratio of 140.1% and a yield of 8.2%.
Investing in a condo in Singapore offers a plethora of advantages that make it a desirable option for prospective investors. Some of these benefits include high demand, potential for capital appreciation, and attractive rental yields. However, before diving into this market, it is crucial to thoroughly consider several factors such as location, financing options, government regulations, and market conditions. By conducting extensive research and seeking professional advice, investors can make well-informed decisions and maximize their returns in Singapore’s dynamic real estate industry. Whether you are a local investor looking to diversify your portfolio or a foreign buyer seeking a stable and profitable investment, condos in Singapore present a compelling opportunity that cannot be ignored.
Despite the decrease in earnings for the year, Propnex observed an increase in activities in the last quarter of 2024, driven by a surge in new private home units that the company helped to sell.
To note, DBS has upgraded PropNex and APAC Realty to a “buy” rating, citing a strong pipeline of new launches in 2025. PropNex explains that the financial impact of these sales will only be reflected three to four months later, implying a substantial increase in its current 1HFY2025 numbers.
“Considering this, along with the positive outlook for the property market in 2025, the company is confident of delivering a strong performance in FY2025, barring any unforeseen events,” states PropNex.
This is supported by an estimated 13,000 new unit launches (including ECs), which is almost double the number of units launched in 2024. The private resale market is expected to remain active, with transaction volumes projected to range between 14,000 and 15,000 units.
Demand for private resale properties will be fueled by the persistent price differential between new and non-landed properties, a preference for larger, move-in-ready homes, and the impact of lower new supply completions, according to PropNex.
The company also predicts a 5% to 7% price increase in the HDB resale market, with transaction volumes reaching 29,000 to 30,000 units. “The HDB resale market will see continued growth as a result of the lower number of five-year minimum occupation period flats entering the market, coupled with sustained demand from urgent homebuyers, unsuccessful Build-To-Order applicants, and budget-conscious families,” says PropNex CEO, Ismail Gafoor.
Ismail notes that newly-launched projects like The Orie, Bagnall Haus, Parktown Residence, and ELTA have sparked strong interest in the market. He adds, “We anticipate a favorable demand for developers’ sales in 2025, with an exciting lineup of projects. Additionally, a positive economic outlook and lower mortgage rates could further enhance market confidence, creating opportunities for both homebuyers and investors.”