Apac Realty 1H2026 profit slips on lower property transaction volumes; expects stronger second half

The Singapore property market saw a “period of consolidation” in the first half of the year, with lower transaction volumes across the new private home, private residential resale and HDB resale segments, according to Apac Realty, the listed parent company of property agency ERA Singapore.

In an Aug 3 release announcing the company’s financial results for the six months ended June 30, Apac Realty CEO Marcus Chu added that market conditions “remained mixed” during the first half of this year, marked by fewer launches and moderating price growth.

Developers sold 4,154 private residential units (excluding executive condos or ECs) in 1H2026, falling 9.4% from the same period last year. The private residential resale market recorded a 5.1% y-o-y decline, with 7,407 units changing hands in 1H2026. Resale deal volume also fell in the HDB market, which logged 12,681 transactions in 1H2026, down 7.4% y-o-y.

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The more muted activity in these segments resulted in Apac Realty’s revenue from real estate brokerage fees and related services falling 3.5% y-o-y to $327.99 million in 1H2026, according to a bourse filing. In its release, the company added that revenue from new home sales fell by 11% y-o-y from $131.2 million in 2H2025 to $116.8 million in 1H2026.

The lower revenue contributed to a decline in profit. Apac Realty posted a 1H2026 gross profit of $33.9 million, down $1.9 million, or 5.3%, y-o-y. Income for the period clocked in at $9.4 million, down 16.8% y-o-y.

Despite the weaker performance, the group is recommending a dividend payout of 5.5 cents per share for 1H2026, comprising an interim dividend of 1.9 cents per share and a special dividend of 3.6 cents per share. “Following a review of the group’s capital requirements, the board of directors believes it is appropriate to propose a one-off special dividend to recognise the continued support of shareholders and enable them to participate further in APAC Realty’s growth,” the company stated.

The interim dividend represents a payout ratio of 77.7% and provides an annualised dividend yield of about 6.6%.

The group’s performance is likely to pick up in the second half of the year, with CEO Marcus Chu expecting stronger market activity amid “a healthy pipeline of new launches”. The company estimates seven new private residential developments and one EC project to launch in 2H2026.

“We expect the market to remain resilient through the rest of 2026, supported by moderate price growth driven by genuine housing demand, particularly from owner-occupiers and right-sizers,” says Chu. He adds that recent policy refinements, such as the removal of the 15-month wait-out period for private homeowners seeking to right-size to HDB resale flats, will help support long-term market stability.

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Chu also notes that recent enhancements to professional standards for property agents will help bolster consumer confidence in the market.

From January 2027 onwards, property agency licenses and property agent registrations will be extended from one to three years. Property agents will also be required to complete at least three property transactions, or pass a refresher examination, within the three-year validity period in order to renew their registrations.

As of June 30, ERA Singapore had a salesforce count of 8,744.