Real estate agency PropNex posted a net profit of $2.3 million in the first quarter of 2019, down 66.6 percent from $7 million in Q1 2018.
Revenue also fell 27.8 percent to $74.2 million from $102.7 million previously, mainly due to a 60.6 percent drop in commission income from project marketing services.
The decline in commission income came as a significant number of option-to-purchase have yet to be completed as at end-March.
“The first quarter is traditionally a subdued period for us, as new launches and buying activity tend to taper off during the Lunar New Year period. The reduced number of new launches in the first two months of the year, compounded by the effects of the property cooling measures and increase in interest rates have inevitably impacted our financial performance,” said Ismail Gafoor, Co-Founder, Executive Chairman and CEO of PropNex.
“In March, however, we observed developer sales rebounding strongly, signifying that buyers and investors are starting to feel more confident in entering the market again with developers continuing to price their developments sensitively. The transactions in March will be recognized in the following quarters.”
Despite the drop in profit, the group’s balance sheet continued to be healthy with cash and cash equivalents of $79.7 million as at 31 March and no gearing.
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