Apac Realty H1 net profit falls 16.8% to S$9.4 million; special dividend of S$0.036 a share proposed

[SINGAPORE] Real estate services player Apac Realty on Monday (Aug 3) posted a net profit of S$9.4 million for the first half ended June, down 16.8 per cent from S$11.3 million in the year-ago period.

Earnings per share decreased to S$0.0217 in H1 from S$0.0314 the year before. Overall revenue slid 3.6 per cent to S$329.3 million in H1, from S$341.5 million in the previous year.

The decline came largely from an overall drop in transaction volumes in new private home sales, private residential resale and Housing & Development Board resale markets during the period, said the company.

Still, the board is proposing a dividend payout of S$0.055 a share in H1, comprising an interim dividend of S$0.019 a share and a one-off special dividend of S$0.036 apiece.

The interim dividend represents a payout ratio of 77.7 per cent, and provides an annualised dividend yield of 6.6 per cent based on the closing price of S$0.58 on Jul 31.

The interim dividend will be paid on Sep 4, following the record date of Aug 26.

Contributions from new home sales fell by 11 per cent year on year to S$116.8 million, while other revenue fell 13 per cent on year to S$1.3 million, mainly due to lower interest income.

Apac Realty CEO Marcus Chu said: “Market conditions remained mixed in the first half of 2026. Following the strong wave of new launches that drove private residential price growth in the latter part of 2025, the market entered a period of consolidation in H1 2026.”

Developers sold 4,154 private homes (excluding executive condos or ECs) in the half-year period, down 9.4 per cent from the 4,587 units sold in year-ago period. They sold 1,343 EC units in H1, up 37.2 per cent from the previous year.

The private residential resale market recorded 7,407 transactions in H1, down 5.1 per cent year on year. HDB resale transactions fell 7.4 per cent on year to 12,681 in the recorded period.

Chu added: “Singapore’s residential property market continues to be underpinned by resilient owner-occupier demand, disciplined supply and stable economic fundamentals.

“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.”

Chu also noted that recent policy refinements – including the removal of the 15-month-wait-out period for eligible private homeowners rightsizing to HDB resale flats – could “support consumer confidence and long-term market stability”.

Seven more condo developments and one EC project are expected to be launched in 2026. ERA projects new-home sales to be between 8,000 and 9,000 units; the secondary market is expected to record 13,000 to 14,000 transactions.

Shares of Apac Realty ended Monday 0.9 per cent or S$0.005 lower at S$0.575, before the release of the results.