PropNex appointed for 20 new projects, reports 48.6% increase in net profit for 1H2018

By EdgeProp Team / EdgeProp Singapore | August 8, 2018 10:17 PM SGT
In its 2Q2018 results, PropNex reported revenue of $121.6 million, up 60.3% y-o-y. For 1H2018, revenue was up 67.4% y-o-y to $224.36 million. “The increase in revenue was largely driven by increased activity for the group’s agency services and project marketing services,” says PropNex.
Net profit was up 2% y-o-y to $4.73 million for 2Q2018, and 48.6% higher y-o-y to $11.73 million for 1H2018.
PropNex says it has been appointed for 20 upcoming new project launches representing 10,800 units for 2H2018/2019. The firm is expecting to launch 15 projects, totalling 5,462 units, in the next five months. In the first seven months of 2018, PropNex says it has led in the sales performance for 12 out of the 15 project launches it has represented, and closed more units compared to other joint marketing agencies.
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PropNex says it has been appointed for 20 upcoming new project launches representing 10,800 units for 2H2018/2019 (Credit: EdgeProp Singapore)
According to the Council for Estate Agencies, PropNex is the largest real estate agency in Singapore with 7,395 sales agents, as at 8 August 2018. This represents a 10.6% growth from January 1, 2018.
“As Singapore’s largest real estate agency, PropNex enjoys the distinct advantage of scale and reach, which enables us to effectively encapsulate all segments of the residential property market,” says Ismail Gafoor, co-founder, executive chairman and CEO of PropNex.
The impact of the latest cooling measures introduced on July 6 is expected to be played out in 2H2018. PropNex expects the private residential resale segment to do relatively well in 3Q2018 and 4Q2018, “precipitated by a strong demand by en bloc owners in need of immediate replacement homes”.
PropNex is forecasting total volume of private property transactions to be in the range of 24,000 – 25,000 units for 2018. Resale transactions are expected to account for 16,000 units.
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The group is also looking abroad. It is expected to start operations in Vietnam by 3Q2018. PropNex currently has overseas operations in Indonesia with 800 salespersons across 18 offices, and 100 salespersons in Malaysia.