PropNex’s winning formula: The people behind the property boom

Many investors may have long wondered how they can participate in Singapore’s property market without directly owning a physical real estate asset. Private property purchases are capital-intensive, highly illiquid, and often come with additional restrictions for foreigners, which makes them less accessible.

While REITs and property developers offer one avenue, some investors are increasingly looking toward listed companies within the real estate value chain as an alternative.

In this context, PropNex stands out as a potential proxy for Singapore’s property market because its performance is closely linked to transaction volumes and the steady appreciation of local property prices.

For investors looking to capitalise on the resilience and long-term upward trend of Singapore’s housing market without the complexities of property ownership, PropNex may offer a compelling way to capture that growth.

Core business focuses on agency services and project marketing services

PropNex is the largest real estate agency in Singapore, offering a range of services including real estate brokerage, project marketing and training. It also boasts the largest number of salespersons in Singapore. The company has four main business segments:

• Agency services: services rendered in the sale and lease of public and private residential and commercial/industrial properties, including HDB flats and executive condominiums, private condominiums, landed properties, retail shops, offices and factories.
• Project marketing services: services rendered in the sale of new private residential development projects for third-party property developers in Singapore, as well as overseas.
• Administrative support services: services related to the use of space and other ancillary services
• Training services: training services relate mainly to real estate-related courses and training programmes organised by the Group for salespersons.

Most importantly, PropNex’s major earnings driver comes from commissions on property transaction, which are first received by the agency and then shared with the agents. The exact percentage of the share that goes to the agents varies based on factors like their seniority and the agent's commission-based sales volume, with estimates suggesting that the agency keeps around 10 to 30% of the total commission. It is also important to note that revenue from new project launches occurring in the fourth quarter of any financial year will only be recognised in the following year, as commissions for new launches are paid by property developers rather than from typical buyer-and-seller transactions in the resale property market.

In view of its business model, PropNex’s earnings are likely to grow on the back of increasing residential property value as well as higher rental demand. PropNex outlines its commission calculation as follows:

Table 1: All Sale and Purchase of Property in Singapore (Including HDB Resale Flats and Non-Privatised HUDC Flats, Commercial and Industrial Properties)

Party	Professional Fee Commission Payable to agency
Vendor / Seller	Minimum two percent (2%) or Up to a maximum of four percent (4%) of contracted price as sales commission.
Purchaser / Buyer	Minimum One percent (1%) or Up to 2% of contracted price as Service fee (if the Estate Agent is the appointed representative).
Source: PropNex.

Table 2: Leasing of Property in Singapore (Including HDB Resale Flats and Non-Privatised HUDC Flats, Commercial and Industrial Properties)

Party	Type of Lease	Duration of Lease	Professional Fee
Landlord or tenant	Room Rental or Partial Unit	24 months or less	Minimum One (1) month's rent or any higher amount as agreed
		Every subsequent 12 months or less	Minimum Half (1/2) month's rent or any higher amount as agreed
		Renewal of lease every 12 months lease	Minimum Half (1/2) month's rent or any higher amount as agreed
	Whole Unit	24 months or less	Minimum One (1) month's rent or any higher amount as agreed
		Every subsequent 12 months or less	Minimum Half (1/2) month's rent or any higher amount as agreed
		Renewal of lease every 12 months lease	Minimum Half (1/2) month's rent or any higher amount as agreed
Source: PropNex.

1H25 earnings highlights

For the first half of the financial year ended 30 June 2025, the company’s revenue surged 73.3% year-on-year (YoY), driven largely by its project marketing segment, which expanded 183.2% YoY. This segment now contributes 43% of total revenue, a significant rise from 24% in the previous full-year results. Gross profit margin improved to 11.0% from 9.7% a year earlier, while net profit margin strengthened to 7.6% from 5.6%. At the bottom line, net profit increased 133.8% YoY.

Figure 1: Revenue breakdown by segments for 1H25

Figure 2: PropNex’s 1H25 EPS has already exceeded its previous full-year EPS

Table 3: Financial highlights of PropNex based on its recent performance

PropNex (in SGD thousands unless otherwise stated)	2023	2024	1H24	1H25	1H25 vs 1H24 YoY Change (%)
Revenue	838,100	782,954	345,586	598,945	+73.3%
Net Profit	49,613	41,641	19,459	45,495	+133.8%
Net Profit Margin (%)	5.9%	5.3%	5.6%	7.6%	+2.0pp
Earnings per Share (SGD)	0.0646	0.0553	0.0257	0.0571	+122.4%
Dividends per Share (SGD)	0.0600	0.0775	0.0225	0.0500	+122.2%
Source: PropNex. Data as of 30 June 2025.

Dividend policy

PropNex has historically paid regular cash dividends, thereby reflecting a shareholder-return orientation. The full-year dividend for FY2024 was SGD 0.0775 per share, translating into a dividend yield of about 8.2% based on the closing share price on 31 December 2024. The resulting payout ratio of roughly 140% appears elevated, but this reflected a one-off uplift, as the company issued special dividends in conjunction with its 25th anniversary.

PropNex’s core business model remains highly cash-generative, asset-light and supported by a low-debt balance sheet, providing the financial flexibility to sustain dividends. Based on the company’s annual report, they target a dividend payout ratio of between 75% to 80%. Nonetheless, dividend declarations remain at management’s discretion and payout ratios are not fixed, varying with profitability, cash flow needs and strategic considerations.

More recently, PropNex declared an interim dividend of SGD 0.0500 per share in August 2025 (for FY2025) with a payout ratio of 88% in 1H2025. The high payout ratio indicates a policy of returning excess cash flows to shareholders when performance permits.

Figure 3: PropNex has been rewarding its shareholders through dividends

Management and ownership

PropNex is led by its Executive Chairman, Mohamed Ismail S/O Abdul Gafoore, who helped build the business from the ground up and remains deeply involved in strategic direction and stakeholder engagement.

On 15 July 2025, the company announced the appointment of Kelvin Fong Keng Seong as Chief Executive Officer, succeeding Ismail Gafoor in the CEO role, while the latter remains in the Executive Chairman position. Kelvin Fong has more than 20 years in the real estate industry, joined PropNex in 2002, became Executive Director in 2018 and Deputy CEO in August 2023. In terms of ownership,

Kelvin Fong is a substantial shareholder, with deemed interests in approximately 75.96 million ordinary shares, representing about 10.26% of the company. This leadership transition reflects structured succession planning and a separation of Chairman and CEO roles, which the Board cited as a move to enhance governance and ensure continuity of growth.

Recent developments

• The appointment of Kelvin Fong as CEO is a key recent management development. His mandate includes overseeing day-to-day operations, driving growth regionally, and furthering PropNex’s technology strategy and training capabilities.
• PropNex celebrated its 25th anniversary in 2025, marking a milestone in its evolution and reinforcing its leadership in Singapore’s residential real-estate brokerage market. It has also made a donation of SGD 6 million to Community Chest to commemorate SG60, reflecting its commitment to community engagement and positive brand positioning.
• The company continues to invest in its technology ecosystem to enhance agent productivity, training and market reach, aligning with its strategic focus on PropTech-enabled service delivery.

Singapore property prices have been steadily increasing over the years

Singapore’s property market continues to draw strong interest, and it is not difficult to see why. Property prices have risen steadily over the years, outpacing traditional investment benchmarks like the STI.

To be clear, the market is not driven by speculation. The government has long made it clear that its priority is steady, sustainable growth rather than allowing sharp price spikes. To address the rapid price surges seen in earlier years, a series of cooling measures were progressively introduced, most notably the Additional Buyer’s Stamp Duty (ABSD), under which foreigners now face a steep 60% tax on the value of any residential property purchased.

As a result, foreign buyer activity has declined. Yet private property prices have continued to climb. This indicates that price growth has been largely supported by resilient domestic demand, rather than external speculation.

Figure 4: Residential property prices have been rising steadily over the past decade, even outperforming the STI

While some may argue that Singapore could be facing a property bubble, this risk is substantially reduced by the stringent safeguards implemented by both the government and financial institutions. This view is echoed by management, as Executive Chairman Mohamed Ismail Gafoor highlighted that, “buyers of private property are required to meet strict creditworthiness standards before they can secure a mortgage”.

For instance, banks apply rigorous stress tests that assess a borrower's ability to service loans even under higher interest rate scenarios (i.e. 4%), ensuring that buyers are not overleveraged. Moreover, the Total Debt Servicing Ratio (TDSR) framework limits the portion of a borrower's income that can be used to repay all monthly debt obligations.

These measures collectively act as structural guardrails for the market, preventing excessive speculation and ensuring that demand is supported by genuine purchasing power rather than unsustainable borrowing.

It reinforces our view that the private residential market is underpinned by genuine, financially resilient demand. As such, we expect property prices to grow at a healthy and sustainable pace over time, rather than experience the sharp corrections seen during past crises such as the Asian Financial Crisis, the Dot Com Bubble, or the Great Financial Crisis.

Figure 5: Strong policy safeguards suggest continued stability in private property price growth

Moreover, Singapore’s household balance sheets remain healthy, providing a key buffer against the risk of a property market bubble.

As mentioned by PropNex's management, household net worth stands at about 89% of total assets, indicating that the majority of household assets are funded by equity rather than debt. This high net-worth ratio reflects conservative borrowing behaviour and disciplined credit standards across the economy.

In our view, households remain financially strong, with healthy asset buffers and low leverage. This reduces the risk of forced selling or sharp price corrections and supports the view that property prices are backed by fundamentals rather than speculation.

Figure 6: Household net worth stands at around 89% of total assets, indicating that the majority of household assets are funded by equity rather than debt.

Easing interest rates to drive further buying interest

Singapore’s residential property market is poised for renewed activity as interest rates begin to ease, making home loans more affordable and reigniting buyer confidence. The fall in borrowing costs comes at a time when housing demand remains underpinned by resilient household balance sheets, population growth (largely driven by an increase in non-resident (foreign) population), and a steady pipeline of new launches. Lower financing costs typically translate into higher affordability and buying power, which are factors that could spur further transactions in both the primary and secondary markets.

In fact, we have already seen that happen between 2020 to 2022 (periods of relatively lower interest rates), when the average three-month compounded SORA was at 0.60%. PropNex’s EPS expanded meaningfully over that period, reflecting stronger underlying demand. With interest rates now easing again, we expect a similarly supportive backdrop for private property demand.

Figure 7: A common proxy for a mortgage loan in Singapore is the three-month compounded SORA

With the most extensive pool of property agents in the country, PropNex’s revenue is closely tied to overall market activity — from new private launches and resale transactions in both HDB and private segments, to the rental market across public and private housing. With a supportive backdrop for demand, the group stands to gain from higher commission volumes across these segments.

Sustained new launch momentum supporting transactional volumes

The private residential market continues to display healthy underlying momentum, supported by both strong supply activity and resilient demand. In 3Q25, developers launched 4,191 new private homes, almost three times the number in the previous quarter, while new-home sales rose to 3,288 units. This rebound is underpinned by a sizeable pipeline, with about 36,800 uncompleted units (excluding ECs) already in the system and nearly 10,000 Government Land Sales (GLS) Confirmed List units slated for release in 2025, a supply level roughly 50 per cent higher than the annual average from 2021 to 2023.

PropNex's management also shared that the lower contribution from project marketing in 2024 simply reflected fewer project launches and a tighter supply pipeline that year. In contrast, 1H25 saw a pick-up in launch activity. With the government planning to add around 25,000 private residential units between 2025 and 2027, it is reasonable to expect this new launch momentum to carry through over the next few years.

Demand has kept pace with rising supply, with new launches in 2025 achieving exceptionally strong take-up rates despite broader macro uncertainties. The 666-unit Skye at Holland, launched amid escalating US China trade tensions, saw 658 units sold at launch, or 99 per cent of the project, at an average of SGD 2,953 per square foot. Almost all buyers were Singaporeans and PRs. Strong demand was also evident at Penrith in Queenstown, which sold 447 units or 97 per cent of its 462 units at around SGD 2,800 per square foot, and at Faber Residence in Clementi, which moved 344 units or 86 per cent of its 399 units at an average of SGD 2,160 per square foot. Earlier launches such as LyndenWoods, Springleaf Residence and Lentor Central Residences likewise achieved more than 90 per cent sales on their opening weekends.

These performances reflect deep domestic buying interest, with oversubscription at many new launches and even multi-generational families purchasing multiple units at some.

Meanwhile, the government’s commitment to maintaining an elevated land-sale programme ensures a well-paced pipeline in the coming years. From 2025 to 2027, land for more than 25,000 private residential units will be injected through the GLS programme, while developers continue to prepare more projects for launch amid firm prices and resilient rental demand. This creates a steady flow of primary-market activity that supports real-estate agencies and enhances revenue visibility for market leaders such as PropNex.

Looking ahead, momentum in the private residential market is expected to remain firm. A strong slate of projects is scheduled for launch from 4Q25 to 1H26, supported by GLS land supply sufficient for more than 4,500 new units in 1H26, a level broadly consistent with 2H25. Taken together, the alignment of robust demand and a disciplined supply pipeline provide a stable and constructive backdrop for the market, reinforcing confidence in sustained activity rather than any abrupt surge or slowdown in the years ahead.

Table 4: Upcoming launches in 4Q25 to 1H26

Project Name	Region (Table 5)	District	Number of units	Preview date
Coastal Cabana (EC)	OCR	18	748	6-21 Dec 2025
Newport Residences	RCR	2	246	16-27 Jan 2026
Narra Residences	OCR	23	540	17-27 Jan 2026
River Modern	CCR	9	455	21 Feb 2026
Sophia Meadows	CCR	9	41	Feb 2026
Rivelle Tampines (EC)	OCR	18	572	Feb-Mar 2026
Villa Natura (Landed)	OCR	26	11	Mar 2026
Pinery Residences	OCR	18	588*	Mar-Apr 2026
Tengah Garden Ave (GLS)	OCR	24	860*	Mar-Apr 2026
Media Circle Parcel A (GLS)	RCR	5	327*	Mar-Apr 2026
Bayshore Road (GLS)	OCR	16	518*	Mar-Apr 2026
Lentor Gardens (GLS)	OCR	26	502*	Apr-May 2026
Duet @ Emily	CCR	9	16*	1Q26
One Leonie Residences	CCR	9	25*	2Q26
Former Thomson View	RCR	20	1240*	2Q26
*Unit counts are estimates based on preliminary planning parameters and may be revised upon final project submission. Refer to Figure 5 for the full definition of URA’s Singapore regions. EC refers to Executive Condominiums, which are generally priced lower than Private Condominiums and hence, potentially lower agent commission per sqft. GLS refers to Government Land Sales, land which is sold to developers for residential property development. Source: PropNex

To better understand market dynamics, the Urban Redevelopment Authority (URA) classifies private residential properties into three regions: the Core Central Region (CCR), Rest of Central Region (RCR), and Outside Central Region (OCR). Prices typically taper as one moves away from the CCR — where prime districts such as Orchard, Holland, and Bukit Timah command the highest premiums — to the more affordable OCR heartlands.

Table 5: URA’s definition of the Core Central Regions in Singapore

Segment	District	Area	Price
Core Central Region (CCR)	9, 10, 11	Orchard, Somerset, River Valley, Tanglin, Bukit Timah, Holland, Newton, Novena, Dunearn	$$ - $$$
Rest of Central Region (RCR)	1-8, 12-15, 20	Marina South, Chinatown, Queenstown, Alexandra, Tiong Bahru, Harbourfront, Keppel, Buona Vista, Fort Canning, Rochor, Little India, Farrer Park, Balestier, Potong Pasir, East Coast, Thomson	$ - $$$
Outside of Central Region (OCR)	16-19, 21-28	Everywhere else	$ - $$
Source: URA, PropertyGuru.

HDB resale market is showing signs of cooling

The HDB resale market saw a clear slowdown in October 2025 as recent demand- and supply-side measures continued to stabilise the segment. Both resale volumes and prices eased from the previous month, signalling a more measured phase after years of strong gains.

Resale transactions fell sharply by 38% month on month to 1,343 units, down from 2,178 units in September. Woodlands, Tampines, Yishun and Sengkang accounted for over a quarter of the month’s deals. The weaker activity dragged prices lower, with the average resale price falling nearly 4% month on month to 647,090 dollars, the steepest monthly decline in at least eight years across both mature and non-mature estates.

Demand was likely tempered by the October BTO launch, which drew strong interest for projects such as Berlayar Residences, Bishan Terraces and Mount Pleasant Crest, as well as shorter-waiting-time flats in Bedok, Sengkang and Yishun. A total of 31,095 applicants competed for 9,144 BTO units, diverting some buyers away from the resale market.

With the festive period approaching, resale activity may stay muted, while prices are expected to rise at a more moderate pace. The resale price index increased 2.9% in the first nine months of 2025, well below the 6.9% growth recorded a year earlier, supporting a more sustainable alignment with income trends.

Transaction patterns also point to stabilisation. In October, 23.8% of flats were sold below 500,000 dollars, up from 20.1% in September. The 500,000 to under 700,000 dollar range made up 42.4% of sales, while transactions between 700,000 dollars and under 1 million dollars eased to 27.3%. Million-dollar flats accounted for 6.5% of sales, down from 7.9%.

Across flat types, most segments saw softer prices. Executive flats in mature estates were the exception with a 2% increase, while four-room flats in mature estates posted the sharpest decline at 3.5%. Prices in non-mature estates fell by between 0.4% and 2.2%, partly due to fewer high-value transactions.

Million-dollar deals dropped significantly to 87 units, down 49% from September’s record 172 units and marking the lowest monthly count in nearly a year. Of these, six were in non-mature estates such as Woodlands, Hougang and Yishun, while the rest were concentrated in mature towns including Toa Payoh, Bukit Merah and Kallang Whampoa.

Looking ahead, we expect the HDB resale market to remain stable with modest price growth. Higher BTO supply, buyer price resistance and ongoing cooling measures are likely to keep demand grounded and prevent rapid price escalation.

PropNex has the largest number of salespersons

PropNex is the largest real estate agency in Singapore by the number of salespersons. It has approximately 35% more agents than its next closest competitor, ERA, as of 14 November 2025. A larger pool of human resources translates to greater market coverage and stronger client reach for PropNex. The expansive network adds to a growing repository of insights, which is invaluable in an environment where timely and accurate data drives better purchasing decisions and more effective prospecting for agents.

The sizeable agent base also reduces the company’s vulnerability to the departure of top producers. While smaller agencies can be heavily impacted when a few high-performing agents move on, PropNex’s wide and diversified pool helps cushion such effects.

Importantly, PropNex’s scale positions it to continue gaining market share over time. A larger salesforce naturally leads to stronger representation across every segment of the market, from HDB resale and private resale to new launches, enabling PropNex to capture a greater share of transaction activity as volumes rise. Developers also tend to prioritise agencies with broad reach and proven sales efficiency, meaning PropNex is more frequently appointed as a lead marketing agency. Each new launch assignment further strengthens its brand visibility, which in turn attracts more agents and clients, creating a self-reinforcing cycle of growth.

Figure 8: PropNex has the largest number of salespersons nationwide

Their salespersons also deliver the strongest number of deals per salesperson nationwide

Well-positioned to capitalise on the new launch boom

PropNex is well-positioned to benefit from the sustained momentum in Singapore’s private residential market. Developer activity has picked up significantly, with 4,191 new launches and 3,288 units sold in 3Q25. The pipeline remains sizeable, with approximately 36,800 uncompleted units and nearly 10,000 GLS Confirmed List units scheduled for release in 2025, around 50% higher than the 2021–2023 annual average. The government’s commitment to maintaining robust land-sale supply, coupled with developers preparing more projects amidst rising prices and firm rental demand, provides a constructive environment for new launches over the next one to two years.

The continued flow of primary-market projects offers tangible tailwinds for real estate agencies, particularly market leaders like PropNex. Its large and highly productive salesforce gives it a clear advantage in capturing transactional volumes from new launches. In recent quarters, PropNex agents have consistently sold more units than competitors, with performance in new launches such as Bloomsbury and Canberra Residences particularly strong, approximately three to six times higher than the next closest agency. This scale, combined with superior data access and proprietary tools, enhances both efficiency and deal conversion, allowing PropNex to maximise revenue from the busy new launch market.

Looking ahead, the strong slate of upcoming project launches from 4Q25 to 1H26, including both private condominiums and executive condominiums, should continue to support transactional volumes and revenue visibility for PropNex. The company is well-positioned to capitalise on this new launch boom, translating sector momentum directly into growth.

Technology as a Strategic Moat Driving Agent Performance and Market Share

PropNex continues to differentiate itself through sustained investments in proprietary PropTech capabilities that enhance agent effectiveness and improve the client experience. The company has built an integrated digital ecosystem that consolidates market intelligence, analytical tools, financial calculators, workflow automation and project insights into a unified platform. This ecosystem reduces reliance on manual processes, improves calculation accuracy, and enables agents to deliver timely, data-driven advice to clients.

The in-house mobile application remains the core of this strategy. Agents can access real-time market indicators such as CCR, RCR and OCR (see Table 5 for definition) statistics, rental yields and price trends, allowing them to perform affordability assessments, investment analyses and comparative evaluations with greater precision. Manual tasks such as financial computations and scenario modelling are now automated within the platform, enhancing both speed and reliability in client engagements.

PropNex has expanded this foundation into several specialised suites that support different stages of an agent’s workflow.

• The Investment Suite equips agents with real-time analytics and deeper insights, strengthening their advisory positioning.
• The Business Suite automates research, documentation and marketing tasks, improving operational efficiency.
• Agent Suite functions as a comprehensive desktop hub for training, resource access, transaction submissions and performance tracking.
• Project Suite complements these capabilities by providing real-time new-launch data and unit availability, enabling agents to advise and convert clients effectively during project marketing.

PropNex’s technology ecosystem has evolved into a distinctive competitive moat that supports repeat transactions, strengthens its brand reputation, and underpins long-term revenue growth. By equipping its agents with comprehensive digital capabilities, PropNex positions itself favourably to capture market share and sustain its leadership in an increasingly data-driven property landscape.

Leadership and Culture as the Foundation of Success

PropNex’s success is deeply rooted in its strong leadership and people-first culture. Much of this can be attributed to Kelvin Fong, one of the company’s key figures who played a pivotal role in building and nurturing its agent network. In PropNex’s early years, nearly half of its agents were under his mentorship, a testament to his influence and leadership.

The now-CEO, Kelvin Fong, has founded and led PNG (Powerful Negotiators Group) Academy. The academy offers training such as pre-licensed workshops, technology and skill-based classes and advanced masterclasses which cater to both new and experienced agents with essential industry expertise.

The company has long been recognised for fostering unity and motivation among its agents. For instance, PropNex was the first agency to introduce the “ring-the-bell” tradition, where a company-wide announcement is made whenever an agent closes a deal and colleagues collectively celebrate the achievement. Although less common in today’s virtual environment, this initiative laid the groundwork for PropNex’s strong culture of shared success and camaraderie.

Beyond motivation, PropNex also places strong emphasis on agent development. Its training programmes go beyond standard sales boot camps, offering workshops on negotiation, property staging, and client preparation. These ensure agents are well-equipped to deliver a seamless client experience.

Kelvin Fong’s regular public talks and educational outreach further reinforce PropNex’s reputation as a thought leader in the property market, shaping both its internal culture and public image, while also providing a neutral platform for prospective buyers to learn more about the property market before engaging a property agent for a property transaction.

The management has also highlighted that 55% of 2025’s increase in new agents are newcomers to the industry, while the remaining 45% joined from other agencies. This blend of fresh entrants and experienced hires strengthens the depth and diversity of its salesforce. It also shows that PropNex remains an attractive platform for both new and seasoned agents. With a large agent pool, the company is less susceptible to the risk of earnings volatility should individual top producers leave, as performance is supported by a broad and diversified base rather than a few key producers.

Figure 12: Comprehensive Training Roadmap

This strong cultural backbone feeds into a virtuous cycle of scale, reputation, and reach. As PropNex’s agent base expands, its visibility and influence in new project launches grow, attracting developers who value access to a wide and capable salesforce. As the company expands its agent base, its scale advantage strengthens, allowing it to command greater visibility in new project launches where developers actively seek PropNex’s extensive sales force to drive marketing and sales efforts.

This dominance enhances brand recognition and trust among homebuyers and investors. A strong public image, reinforced through initiatives such as the annual condominium giveaway and the PropNex Monopoly competition, fosters greater engagement and referral traffic. Such brand-led trust becomes self-reinforcing, attracting more clients, which in turn draws more agents and developers to partner with PropNex.

Moreover, PropNex also has a CRM Marketplace, which allows its agents to automatically reconnect with their clients through a one-stop gifting solution alongside a comprehensive PropNex Property Wealth Report.

With over 13,000 agents, competition for top-producer recognition is intense, which may demotivate some individuals compared to smaller agencies. To address this, PropNex has created dedicated award categories for Gen Z agents as well as new joiners, to nurture “young blood” and ensure continued talent renewal. An award category was also introduced to recognise those who achieved a 20% increase in sales compared to the previous year.

Boost from EQDP, GEMS and passive ETF inflows

PropNex is well-positioned to benefit from ongoing initiatives aimed at deepening Singapore’s equity market. The company is already a beneficiary of the Grant for Equity Market Singapore (GEMS) scheme, which supports homegrown firms in strengthening investor engagement and expanding their capital markets footprint.

In addition, PropNex could see heightened investor attention from the Monetary Authority of Singapore’s Equity Market Development Programme (EQDP), a SGD 5 billion initiative focused on boosting liquidity and institutional participation among small- and mid-cap counters.

Another potential catalyst is the recently launched iEdge Singapore Next 50 Index, which tracks the next tier of promising Singapore-listed companies outside the STI. PropNex is included in the index. As financial institutions introduce ETFs and other passive investment products tracking this new benchmark, PropNex may benefit from inclusion-driven inflows. These passive flows, combined with EQDP and GEMS support, could further elevate PropNex’s visibility and liquidity in the market.

	ROE		Net Profit Margin		EPS Growth
FY	PropNex	APAC Realty	PropNex	APAC Realty	PropNex	APAC Realty
2024	32.9	4.6	5.2	1.3	-14.4	-39.2
2023	38.1	7.4	5.7	2.1	-23.3	-55.6
2022	53.1	16.5	6.1	3.8	3.9	-24.9
2021	61.9	22.4	6.3	4.8	106.3	115.3
2020	37.8	10.9	5.6	4.2	45.0	17.3
2019	50.9	9.7	4.8	3.8	-5.2	-42.2
2018	143.5	17.6	4.5	5.7	7.9	-15.0
Source: Bloomberg Finance L.P. Data as of 31 December 2024.

While PropNex currently trades at 17.9X forward P/E, which is about two standard deviations above its historical average of 12.0X, and at a premium to its peer, APAC Realty, which is trading at a P/E of 13.0X.

At first glance, PropNex’s valuations may appear rich relative to its own history. However, the company’s forward P/E has exhibited a long-term uptrend, and its EPS has largely tracked the broader URA Residential Property Price Index (with the exception of 2024, which has a lower number of new launches). This correlation is unsurprising given that PropNex’s earnings are closely tied to property market performance, making forward-looking analysis more relevant than historical averages.

We assess that the stock is undervalued on a forward-looking basis, supported by strong earnings growth potential from sustained private residential launch momentum and a healthy pipeline of uncompleted units. PropNex’s proprietary technology platform further enhances agent productivity, providing a structural competitive advantage over peers.

Coupled with its asset-light model, low debt, and dominant market positioning, these factors justify a higher forward P/E compared to its history and peer, indicating that the current valuation does not fully reflect the company’s growth prospects.

Moreover, the MAS EQDP, GEMS and the new iEdge Singapore Next 50 Index could collectively drive further coverage and liquidity, which could trigger further valuation re-rating for PropNex.

We assign a fair P/E multiple of 22X, three standard deviations above its historical average (12X), which we think is justified given its competitive positioning as well as the growth in residential property market. Applying this to our estimated 2027 earnings yields a target price of SGD 2.98, implying upside potential of 58.6% from the closing price of SGD 1.88 on 31 December 2025. In addition, we estimate an average annual dividend yield of 5.8%, further supporting the total return potential for investors.

Table 7: PropNex Earnings

PropNex	FY24A	FY25E	FY26E	FY27E
P/B Ratio (X)	5.70	10.7	10.1	9.5
P/E Ratio (X)	17.1	17.5	15.5	13.9
Earnings growth (%)	-14.4%	94.54%	12.42%	12.04%
EPS (in SGD)	0.0553	0.1076	0.1209	0.1355
DPS (in SGD)	0.0775	0.0968	0.1088	0.1220
Dividend Yield (%)	8.20%	5.15%	5.79%	6.49%
Upside Potential (%) (Fair P/E of 22X)	58.6%
Target Price	SGD 2.98
Current Price	SGD 1.88
Source: Historical data is from Bloomberg Finance L.P., while forecasted data are based on iFAST Estimates. Data as of 31 December 2025.

Figure 13: PropNex forward P/E ratio (X)

Figure 14: PropNex’s annual EPS and residential property prices

Figure 15: PropNex share price vs Earnings per share

Figure 16: PropNex historical EPS and forecasted EPS

PropNex’s performance is inherently linked to the broader property market, and several risks could affect its near-to-medium-term outlook.

Market Risk

As a real estate agency, PropNex is exposed to the cyclical nature of property demand. Potential government cooling measures or a prolonged high interest rate environment could dampen buyer sentiment and transaction volumes. Effective navigation of these macro risks will be crucial to sustaining earnings growth.

Regulatory and Operational Risks

The increasing difficulty of obtaining a property agent licence may limit future agent recruitment, potentially constraining the company’s expansion capacity. In addition, tighter compliance requirements, including enhanced due diligence checks and higher Additional Buyer’s Stamp Duty (ABSD) for certain buyer categories, could lengthen the sales process and slow transaction turnover.

Fraud and Misrepresentation Risks

The industry has seen rising cases of agent impersonation scams, which could erode public trust if left unchecked. The Council for Estate Agencies (CEA) combats this issue by providing a publicly accessible online CEA Public Register, allowing members of the public to verify the identity and registration details of property agents before engaging their services.

Technology Disruption Risk

While technology continues to shape the real estate landscape, the human touch remains critical in large-value transactions. Property purchases in Singapore typically involve multiple stakeholders, including HDB, CPF, bankers, developers and lawyers, making complete automation unlikely. Instead, PropNex's digital initiatives are expected to complement rather than replace its agents' role in facilitating complex transactions.

Johor-Singapore Special Economic Zone and upcoming RTS Link could moderate rental demand

The Johor–Singapore SEZ, together with the upcoming RTS Link and potential revival of the HSR, presents a medium-term risk to Singapore’s residential rental market. Improved cross-border connectivity and significantly lower housing costs in Johor may encourage some Singapore-based workers, especially cost-sensitive renters and hybrid workers, to consider living in Johor while working in Singapore. If the SEZ successfully attracts higher-value industries and multinational tenants, residential demand could gradually shift across the border, exerting mild competitive pressure on rental growth in Singapore, particularly in more price-elastic OCR segments.

When presented to the company’s management on this potential risk, they provided reassurance that the overall impact is likely to be limited.

They noted that the RTS Link is designed to carry about 10,000 passengers an hour, which translates to roughly 30,000 commuters during a typical three-hour peak period. This represents only a small portion of the approximately 350,000 individuals who cross the border daily. Given this limited capacity, the RTS Link is unlikely to divert a meaningful number of Singapore-based workers to Johor housing.

Management, therefore, expects rental demand and yields in northern Singapore to stay resilient. While rents may ease slightly as new commuting options emerge, any adjustment is likely to be mild and gradual rather than disruptive.

This assessment is consistent with our analysis. While the Johor–Singapore SEZ and enhanced cross-border connectivity introduce a medium-term risk, the RTS Link’s capacity constraints and the scale of existing cross-border flows suggest that any diversion of rental demand is likely to be incremental rather than structural. As such, we expect rental demand and yields in northern Singapore to remain broadly resilient, particularly in the near to medium term, with only limited pressure on OCR rental growth.

Declaration:

For specific disclosure, at the time of publication of this report, IFPL (via its connected and associated entities) and the analyst who produced this report hold a NIL position in the abovementioned securities.

This research report is produced under the Grant for Equity Market Singapore (“GEMS”) Scheme. iFAST Financial Pte Ltd receives financial compensation for the preparation and publication of this report. For more information regarding the GEMS scheme and its objectives, please refer to this infographic. iFAST Financial Pte Ltd maintains editorial independence regarding the analysis and conclusions presented herein.