News: PropNex profit jump 47.8% in 2020 despite pandemic

Feb 25, 2021

The group noted that their 2020 performance was led by domestic demand coming from both the public housing and private residential segments.

Real estate agency PropNex saw its net profit after tax for the financial year ended 31 December 2020 jump 47.8% year-on-year to $31.2 million, despite the COVID-19 pandemic and the resulting restrictions.

Revenue also increased 22.8% year-on-year to $515.6 million from the previous year’s $419.8 million.

PropNex attributed the hike mainly to the “increase in commission income from project marketing services of $83.8 million and an increase in agency services of $13.1 million, as a result of the higher number of transactions completed in FY2020”.

It noted that the group’s 2020 performance was led by domestic demand coming from both the public housing and private residential segments.

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Demand was driven by local property buyers who capitalised on the low borrowing rates as well as the attractive pricing of newly-launched development projects.

“The current resilience in the market was fuelled by ample liquidity and low interest rates. As a result, the property market returned with relatively more activities in the second half of 2020. For the whole of 2020, private home prices climbed 2.2%, following the 2.7% rise in 2019. Meanwhile, HDB resale prices rose by 5%, thereby underpinning the overall resilience of the real estate market in Singapore,” said Ismail Gafoor, co-founder, Executive Chairman and CEO of PropNex.

He noted that real estate agency players had been quick in adapting to the situation by adopting digital technologies “to ensure business continuity despite the circuit breaker period”.

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“This translated to a rise in our market share across the three segments of new launches, private resale and HDB resale, and allowed us to achieve growth in our top- and bottom-line,” said Gafoor.

Meanwhile, PropNex revealed that the number of its salespersons grew to 9,057 as of 22 February 2021 from 8,327 as of 1 January 2020 – making it the first real estate agency in Singapore to cross the 9,000 salespersons mark.

“This reflects PropNex’s proven training programmes, its signature technological platform, virtual webinars and property shows which attracted more experienced and new salespersons to join the group,” it said.

PropNex intends to further “recruit and retain the sales force with a vision of 10,000 salespersons in Singapore by 2022”.

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