PropNex reports net profit growth of 96.7% to $16.2 mil for 1Q2021

SINGAPORE (EDGEPROP) - Mainboard-listed real estate agency PropNex Ltd has reported a 96.7% growth to $16.2 mil in its net profit after tax in its financial reporting for 1Q2021 ended March 31. This increase comes on the back of a 63.3% growth in the group’s revenue to $220.6 million.

The number of PropNex-affiliated agents also grew 12.6% to 9,373 as at May 3, 2021, from 8,324 agents as at Jan 1, 2020. The group says it is on track to achieving its goal of 10,000 salespersons by 2022.

“The group turned in an extremely strong quarter, with excellent performance across all businesses. We witnessed a rise in our market share across the three segments of new launches, private resale and HDB resale, which allowed us to achieve growth in our top- and bottom-lines,” says Ismail Gafoor, co-founder, executive chairman, and CEO of PropNex.

The company says that its latest financial performance was driven by the higher number of property transactions completed in the last quarter and follows the recovery of the private residential market from the 2018 property cooling measures.

PropNex saw its revenue increase 63.3% y-o-y from 135.1 million in 1Q2020 to $220.6 million in 1Q2021. The group says this is mainly attributed to an increase in commission income from its agency services of about $47.5 million, and an increase in income from its project marketing services of about $38 million.

Factors such as ample liquidity in the market, low interest rates, and rising optimism supported sales in the primary residential market, says Gafoor, adding: “We are expecting buyer interest to carry through for both the new and resale private homes, as economic recovery gains traction and market sentiments recover.”

The company says that it does not expect the possible onset of new property cooling measures to significantly impact property transaction volume over the next three quarters due to dwindling supply of new private homes. If new cooling measures are implemented, the agency says it expects a similar knee-jerk reaction similar to the aftermath of the 2018 property cooling measures, followed by a period of recovery.