DBS upgrades PropNex and APAC Realty to ‘buy’ amid strong pipeline of new launches in 2025
In 2025 to 2026, the analysts also see nonpublic resell transactions continuing to be “stable” at 13,500 to 14,000 units. Sell-through rates can average between 30% to 50% throughout launch week ends, which might assist a continuous turn-around in productivity for both agencies.
” We anticipate a revive in general volumes in 2025, driven by new sales going back to [near] 8,000-8,500 units annually. This is sustained by steady property costs, with changes anticipated in the range of +1% to +2%,” state Derek Tan and Tabitha Foo in both reports dated Jan 6.
On The Other Hand, APAC Real estate’s brand-new target cost represents a higher P/E multiple of 13 times in line with its four-year historical average on rolled-forward FY2025 earnings.
DBS Group Research has improved its appeals on PropNex and APAC Realty to “purchase” from “hold” as both counters are tipped to take advantage of a strong pipeline of new launches in 2025.
” The group’s industry share in discreet new sales and resale has raised to 56% -60%, significantly greater than pre-pandemic stages,” note Tan and Foo for PropNex especially, adding that these figures suggest that one in every two deals is made by a PropNex broker. With this in mind, a prospective increase in market share as PropNex contributes to its sales force, would present upside potential to the experts’ assessments.
The rebound will mainly be generated by three main variables: lower home mortgage rates; home owners, upgraders and permanent individuals getting homes on their own; in addition to the intro of a wider selection of projects with solid attributes.
” We have moved the multiple in the direction of +1 standard deviation (s.d.) (versus [a] five-year standard of 12 times), as the marketplace and the firm’s profitability go to an inflexion factor,” the analysts write.” [PropNex’s] FY2025/FY2026 dividend return of 7.7% (80% payout percentage) is appealing, with potential upside if the team decides to disperse its cash money reserves (16 cents per share) to investors.”
Their brand-new target cost for PropNex is pegged to 15 times the firm’s P/E on rolled-forward and changed FY2025 profits. PropNex’s FY2025 profits estimates were lowered to represent lesser entire sales and margins presumptions.
an and Foo have increased their target rate quotes for both PropNex and APAC Real Estate to $1.15 and 50 cents from 95 cents and 48 cents respectively.
PropNex is the leading real estate company in Singapore with approximately 12,000 brokers representing 34% of the nation’s market share. APAC Realty is among the top competitors in the real estate brokerage firm sector. It has an existence in 17 Asia Pacific (APAC) nations and one of the biggest company footprints in Asia with its ERA franchise business network.
