Luxury home sales boost PropNex's 2016 revenue

Gramercy Park at the tail end of its construction last January. The development was among the projects marketed by PropNex after it stepped up its focus on the luxury homes segment in 2015.
PHOTO: The Straits Times

Real estate agency PropNex Realty turned in far higher revenue last year despite facing a challenging property market still feeling the effects of cooling measures.

It recorded a 21.5 per cent year on year jump in gross revenue to $278.9 million, thanks partly to better sales performance in the luxury residential segment.

Overall transaction volume surged 10.4 per cent last year to 46,229, from 41,875 in 2015, it said yesterday.

"The main driving force last year was the high-end market penetration which had substantial growth for us. We were also actively involved in new launches last year and did well in the HDB resale segment," said chief executive Ismail Gafoor.

Training initiatives to improve agents' professionalism and market knowledge also helped spur sales.

Propnex's chief executive Ismail Gafoor.Photo:The Straits Times

Since stepping up its focus on the luxury homes segment at the end of 2015, PropNex has marketed projects such as Gramercy Park, V on Shenton, Leedon Residence and OUE Twin Peaks.

Last year, its agents sold more than 250 luxury units from new launches, up from about 80 in 2015.

Recently, it helped shift 40 out of 50 units sold at The Peak @ Cairnhill II in prime District 9.

Mr Ismail expects sales in the high-end residential market to remain active this year, with the prospect of a 5 per cent price fall as developers try to clear unsold inventory in the core central region.

A new tax - additional conveyance duty - imposed last week has plugged a loophole that allowed some developers to use innovative ways to escape hefty qualifying certificate extension charges on unsold homes.

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"Developers need to think about clearing the units before the deadline, which means there could be more competitive pricing," Mr Ismail added.

The agency also announced that it has expanded to Indonesia via a master franchise contract with PT PropNex Realty Indonesia.

It was established in the second half of last year and comprises more than 600 sales staff and seven PropNex offices in Indonesia.

Plans are afoot to grow the agent headcount to over 1,000 in Indonesia and open five offices in Jakarta by the end of the year.

"We chose PropNex because in Indonesia we see 60 to 70 per cent of customers (who) have an interest in Singapore property," said PT PropNex Realty Indonesia chief executive Luckyanto, who uses one name.

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Most Indonesian buyers are keen on the high-end property segment, with some looking at mass-market projects, the agency said.

Mr Ismail expects the expansion to Indonesia to boost revenue by about 5 per cent this year, and he is eyeing the Vietnam market next.

PropNex has 5,710 agents in Singapore, up from the 5,464 as at Jan 1 last year.

This article was first published on Mar 15, 2017. Get a copy of The Straits Times or go to for more stories.