PropNex - 5 key takeaways from SIAS Corporate Connect Webinar

What happened?

PropNex Limited is Singapore’s largest listed real estate agency with over 14,000 salespersons locally and a regional network of more than 16,000 across Asia-Pacific.

The company recently joined a Corporate Connect webinar organised by SIAS and supported by SGX Group to share updates on its business performance, dividend track record, and the outlook for the Singapore property market.

The session gave investors a closer look at PropNex's diversified business model, its plans to grow market share, and how it intends to navigate the property cycle in 2026.

During the discussion, we spoke with Ismail Gafoor, Executive Chairman, PropNex Limited to understand the company's revenue mix, capital returns policy, and the structural demand drivers expected to support the property market over the next five years.

Watch the video to learn more about PropNex.

Key Takeaways from Corporate Connect Webinar with PropNex

Here are our five key takeaways from the discussion:

• Strong dividend payout track record supported by an asset-light business model
• Diversified revenue mix provides cushion against property cycle downturns
• Growing sales force and technology investment driving market share gains
• Property market outlook supported by population growth and lower interest rates
• Multiple growth levers beyond residential brokerage to sustain long-term earnings

#1 - Strong dividend payout track record supported by an asset-light business model

Management highlighted that the company aims to distribute 75% to 80% of profit attributable to owners as dividends. In practice, payouts have consistently exceeded this level.

For FY2023, PropNex distributed more than 92% of profits as dividends. In FY2024, the payout ratio rose to about 140% after a special 2.5 cent dividend was declared for the company’s 25th anniversary. For FY2025, total dividends came in at 9.5 cents per share, representing almost 100% of earnings.

This is supported by PropNex’s asset-light business model.

Unlike property developers, PropNex does not need to hold inventory or commit large amounts of capital to land and construction. Its revenue is mainly earned through commissions, which supports strong cash conversion and allows the company to pay out a large share of earnings.

Management also pointed to its team and corporate culture as key strengths, supported by recognition such as the Singapore Corporate Awards Best Managed Board (Bronze) and the Singapore Business Review Technology Excellence Award for three consecutive years.

#2 - Diversified revenue mix provides cushion against property cycle downturns

Management shared that FY2025 revenue was spread across several key segments.

Rental and leasing contributed about S$191 million, or 17% of total revenue, up from S$181 million a year earlier. This segment is more recurring in nature, as leases are typically renewed every one to two years and generate commission income upon renewal.

Public housing brokerage contributed about S$150 million, or 15% of revenue. While slightly lower than the previous year, management sees this as a relatively stable segment, supported by Singapore’s large base of 1.1 million HDB homes.

Private resale revenue rose to S$234 million from S$181 million, helped by a more supportive interest rate environment.

The biggest growth came from project marketing, where revenue surged to S$434 million from S$185 million, driven by higher new launch supply.

Overall, management estimates that about two-thirds of PropNex’s business, including rental, public housing and private resale, can better withstand property cycles because housing demand remains a basic need.

#3 - Growing sales force and technology investment driving market share gains

PropNex started 2020 with about 8,324 salespeople. As of the webinar date, this had grown to 14,327, with management noting that around 400 agents were added in the first four months of 2026 alone.

While PropNex agents make up about 38% of Singapore’s licensed salespeople, the company captured around 60% market share across public housing, private resale and private new launches in FY2025, based on transactions where a PropNex agent represented either the buyer or seller.

Management attributed this productivity gap to its investment in proprietary technology and data tools.

PropNex has built its own apps and platforms that give agents faster access to transaction data, ahead of publicly available caveat data that can take three to four weeks to appear.

This helps improve agent productivity and makes the platform more attractive to experienced agents from competing agencies.

Management said PropNex aims to grow its sales force to between 15,000 and 16,000 over the next year.

#4 - Property market outlook supported by population growth and lower interest rates

Management expects HDB resale prices to grow by only 2% to 3% in 2026, which would be among the lowest annual increases since 2020. Private residential prices are expected to rise by 3% to 4%.

On transaction volumes, PropNex expects around 9,000 private new launch units to be sold in 2026, with private resale volumes similar to 2025 and public housing volumes potentially slightly better.

Two structural drivers support this outlook.

The first is lower interest rates. Mortgage rates from major banks were around 1.5% to 1.6% at the time of the webinar, compared with 4.25% to 4.5% about three years ago. Lower rates reduce monthly instalments and can encourage buyers to enter the market.

The second is population growth. Singapore’s population has grown from about 5.7 million in 2020 to 6.1 million last year, while the government has indicated plans to grant more citizenships and PR approvals over the next few years.

This supports demand across the rental, resale and new launch markets, as foreigners typically rent first, PRs may buy HDB or private homes, and new citizens become eligible to purchase without foreigner ABSD.

On the supply side, the government has committed to releasing more than 25,000 private residential units through Government Land Sales over the coming years, which should help sustain new launch activity for PropNex to market.

#5 - Multiple growth levers beyond residential brokerage to sustain long-term earnings

Management highlighted several growth drivers.

First, commission revenue tends to rise with property prices because brokerage fees are charged as a percentage of transaction value. As land costs, construction costs and selling prices increase over time, the commission earned per transaction also rises.

Second, PropNex still has room to grow in segments where its market share is smaller. These include commercial and industrial brokerage, leasing, valuation and consultancy, and capital markets advisory.

Third, its overseas business operates on a franchise model across markets such as Malaysia, Indonesia, Vietnam, Cambodia and Australia. This allows PropNex to earn royalties without taking on the full operating risk of running those markets directly.

Management also noted that while it is not currently monetising its proprietary data, the data remains valuable in helping agents improve productivity and gain market share.

On risks, management acknowledged that a sharp rise in interest rates, weaker geopolitical conditions or a meaningful increase in retrenchments in Singapore could hurt buyer sentiment.

However, with Singapore’s population growth plans and GLS pipeline already mapped out, management does not see imminent downside pressure from domestic factors.

Hear directly from management of PropNex

Watch the full Corporate Connect webinar with PropNex on SIAS’s YouTube channel to catch the complete discussion and hear the insights straight from the company.

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