Apac Realty’s H2 profit halves to S$3.1 million as new home sales drop

REAL estate services player Apac Realty posted a 53.6 per cent fall in net profit to S$3.1 million for the six months ended Dec 31, 2024, hit by a fall in new home sales.

The company’s revenue for the half-year dipped 0.6 per cent to S$295.9 million, on the back of a 30.5 per cent drop in revenue from new home sales to S$50 million.

There was a low number of new project launches in the first nine months of 2024, noted Apac Realty chief executive Marcus Chu in a press statement on Thursday (Feb 27).

Nevertheless, Apac Realty partly offset the drop in total revenue in the second half of the 2024 financial year with a 9.4 per cent rise in revenue from the resale and rental of properties to S$241.5 million.

The company’s board declared a final dividend of 1.2 cents per share, slightly lower than last year’s final dividend of 1.4 cents per share. The latest dividend will be paid out on May 8.

Operating expenses for H2 were down 6.4 per cent to S$19.4 million. Personnel costs were down 6.7 per cent to S$9.8 million with the lower headcount in Singapore. Marketing and promotion expenses also fell by 31.1 per cent to S$2 million, on the back of lower recruitment, advertising and brand promotion costs.

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For the full year, Apac Realty posted a 38.8 per cent fall in net profit to S$7.2 million, while FY2024 revenue rose 0.7 per cent to S$561 million.

Chu noted that there are 29 planned new residential launches this year, representing more than 15,000 new homes.

But with the slower pace of interest rate cuts by the US Federal Reserve, he expects the Singapore property market “to continue showing signs of moderation” in 2025.

Apac Realty shares ended Thursday at S$0.435, down 3.3 per cent or S$0.015.

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