PropNex profit dips in 1H2026 as fewer new launches weigh on commissions from project marketing

Real estate agency PropNex’s net attributable profit slipped by 3.1% y-o-y to about $40.9 million for the first half of this year, while revenue inched up 0.7% to $603 million.

The slight increase in revenue was driven largely by a 6.9% uptick in commission income from agency services to $360.5 million for the half year, as compared to the year-ago period.

This came amid healthy transaction activity in the HDB resale, landed resale, and leasing segments, PropNex said in an Aug 13 bourse filing.

Read also: A changing tide in the HDB resale market?

However, fewer new launches during the period meant that commission income from project marketing services dropped to $238.4 million, a 7.8% decrease from a year ago.

Property developers launched 3,627 new private homes in the first half of this year, down 22.2% from the same period last year.

Against this backdrop, developers also sold fewer new private homes — moving 4,154 units (excluding executive condos, or ECs) in the first six months of 2026, down 9.4% y-o-y.

Ismail Gafoor, executive chairman of PropNex, described 1H2026 as a "solid" half year for the agency, with the performance broadly reflecting sales secured between October 2025 and March 2026, given the usual lag between transactions and revenue recognition.

"This period is typically slower for new launches due to the year-end and Chinese New Year holidays," he added.

The lower revenue contribution from project marketing services also resulted in a decrease in gross profit margin to 10.6%, as compared with 11% in the first half of last year. In turn, gross profit fell 3.5% to $63.9 million.

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Nonetheless, PropNex grew its market share, by transaction volume, to 64.3% during 1H2026, up from 60.6% in 2025.

Comparing the latest half-year period with the whole of last year, the group expanded its market share across all property segments:

New launches: 52.5%, up from 48.9%Private resale: 66.3%, up from 65.3%Landed resale: 55.4%, up from 52.5%HDB resale: 68.1%, up from 63.2%Private leasing: 43%, up from 38.2%

In late July, the government lifted the 15-month wait-out period for private homeowners buying non-subsidised HDB resale flats without a HDB housing loan. It also updated the additional buyer’s stamp duty (ABSD) regime to support housing developers in undertaking large-scale en bloc redevelopments.

PropNex noted in its Aug 13 bourse filing that the removal of the 15-month wait-out period will likely support housing mobility as private homeowners right-size into HDB resale flats. These may include eligible older households, empty nesters, and families with changing needs.

The move could also free up private resale stock and lift demand for larger resale flats such as five-room and executive units, which will support transaction volumes in both markets, the agency added.

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Meanwhile, PropNex expects the longer ABSD remission timeline for large-scale en bloc redevelopments to give developers more confidence to take on ambitious projects. It may also encourage unit owners at large developments, which have previously attempted collective sales without success, to consider going en bloc again.

PropNex said it remains cautiously optimistic about delivering a strong full-year performance for 2026, barring unforeseen events.

It continues to expand its sales network in Singapore. PropNex salespersons grew to 14,574 as at Aug 3, up from 13,945 as at Jan 1.