DBS upgrades PropNex and APAC Realty to ‘buy’ amid strong pipeline of new launches in 2025

The recoil will mostly be generated by three main aspects: lower mortgage prices; home owners, upgraders and long-term people purchasing homes on their own; as well as the intro of a wider array of projects with strong attributes.

In 2025 to 2026, the analysts also see nonpublic resale purchases standing “steady” at 13,500 to 14,000 units. Sell-through rates could average in between 30% to 50% throughout release week ends, that can support a continuous turnaround in profitability for both agencies.

DBS Group Research has actually improved its appeals on PropNex and APAC Realty to “acquire” from “hold” as both counters are tipped to gain from a good pipeline of new release in 2025.

PropNex is the leading property company in Singapore with about 12,000 brokers representing 34% of the nation’s market share. APAC Realty is one of the leading competitors in the real estate brokerage firm industry. It has a presence in 17 Asia Pacific (APAC) nations and among the biggest brand presences in Asia with its ERA franchise business organization.

” We anticipate a rebound in general volumes in 2025, driven by new sales going back to [about] 8,000-8,500 units annually. This is sustained by steady property rates, with variations expected in the series of +1% to +2%,” say Derek Tan and Tabitha Foo in both reports dated Jan 6.

On The Other Hand, APAC Realty’s new target price represents a higher P/E multiple of 13 times in line with its four-year historical standard on rolled-forward FY2025 incomes.

an and Foo have boosted their target rate quotes for both PropNex and APAC Real Estate to $1.15 and 50 cents from 95 cents and 48 cents specifically.

Tembusu Grand floor plan

Their brand-new target rate for PropNex is secured to 15 times the company’s P/E on rolled-forward and revised FY2025 incomes. PropNex’s FY2025 earnings quotes were decreased to represent lower total sales and margins presumptions.

” The group’s market share in private new sales and resale has actually raised to 56% -60%, significantly higher than pre-pandemic levels,” note Tan and Foo for PropNex particularly, including that these figures show that one in every two deals is made by a PropNex agent. With this in mind, a possible raise in market share as PropNex adds to its sales force, would present upside potential to the analysts’ assessments.

” We have actually transferred the multiple towards +1 standard deviation (s.d.) (versus [a] five-year standard of 12 times), as the market and the company’s profitability go to an inflexion point,” the experts write.” [PropNex’s] FY2025/FY2026 dividend revenue of 7.7% (80% payout percentage) is appealing, with potential upside if the group chooses to allocate its cash reserves (16 cents per share) to shareholders.”