PropNex H1 net profit down 3.1% at S$40.9 million; interim dividend unchanged

PropNex's net profit dipped by 3.1% to S$40.9 million for the first half of 2026, down from S$42.3 million in the same period last year. Nonetheless, revenue remained flat, growing by a mere 0.7% to S$603 million, up from S$598.9 million. The increase in revenue was primarily driven by a 6.9% rise in commission income from agency services, reaching S$360.5 million, compared to S$337.2 million previously.

This growth was tempered slightly by a 7.8% decline in commission income from project marketing services, which fell to S$238.4 million from S$258.5 million. Despite this, earnings per share decreased to S$0.0553 from S$0.0571 in the previous year. PropNex announced an interim dividend of S$0.05 per share, unchanged from the previous half year, payable on Sep 11 following book closure on Aug 26.

The payout ratio equates to 90.4% of net profit. PropNex attributes this performance to sales secured between October 2025 and March 2026, as new launches typically see slower sales due to year-end and Chinese New Year holidays. The company expanded its market share to 64.3% in H1 2026, up from 60.6% in FY2025, with notable increases in new launches (48.9% to 52.5%) and HDB resale (63.2% to 68.1%).

Looking ahead, PropNex forecasts a moderate 3-4% growth in private home prices for 2026, with developers' sales expected at around 9,000 units (excluding executive condominiums) and private resale transactions between 14,000-15,000 units. For public housing, HDB resale prices are expected to rise by up to 1% in 2026, with resale volume projected at 26,000-27,000 units.

PropNex CEO Kelvin Fong noted that current trends indicate home purchases are driven by locals with genuine housing needs rather than speculation, and structural tailwinds such as population growth, immigration policy, lower interest rates, and rising incomes remain in place.