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[SINGAPORE] Property developers and agencies are poised to benefit in the second half from a robust pipeline of new residential projects, and analysts are upbeat about sustained home buying momentum as sentiment picks up.

Revenue from home sales fuelled topline growth at developers City Developments Ltd (CDL), UOL and GuocoLand in H1 2025, while recurring income from the groups’ commercial properties was stable with resilient occupancy, higher rental reversions and asset enhancement initiatives.

PropNex and Apac Realty, which dominate Singapore’s real estate sales force with their PropNex and ERA Realty agencies, both saw earnings swell in the first half, with home sales having picked up strongly at the end of 2024.

For H1 2025, PropNex’s net profit jumped 122.4 per cent to S$42.3 million. Apac Realty posted a 176.4 per cent rise to S$11.3 million.

PropNex is dishing out an interim dividend of S$0.05 per share, the highest in its history, and Apac Realty is paying out S$0.027 per share, up from S$0.009 in the year-ago period.

Among developers that reported earnings last month, UOL outperformed with a 58 per cent rise in net profit to S$205.5 million. Revenue grew 22 per cent to S$1.6 billion, with a 40 per cent increase in development revenue to S$731.7 million on recognitions from Pinetree Hill, Watten House and Meyer Blue.

CDL booked revenue of S$1.7 billion in H1, up 8 per cent and similarly boosted by property development revenue, up 24 per cent, DBS analysts noted. The group recorded a 3.9 per cent increase in net profit to S$91.2 million, weighed down by S$63.1 million in net forex losses on US dollar-denominated loans for past US hotel acquisitions and working capital requirements.

CDL sold 903 new units in its first half. Residential sales value surged 90 per cent on year to S$2.2 billion, with profit recognition from a joint venture executive condominium project Copen Grand, The Myst, Norwood Grand, CanningHill Piers, Tembusu Grand, The Orie and Kassia.

GuocoLand’s revenue was up 20.3 per cent on year to S$906.3 million in H2, underpinned by strong performance from its Singapore’s property development and property investment segments. Net profit, however, was dragged down by losses in China, leading to a 48 per cent decline to S$32.4 million.

GuocoLand declared a first and final dividend of S$0.07 per share for the period, up from S$0.06 the year before. CDL is giving a special interim DPS of S$0.03, higher than the S$0.02 paid for the year-ago period. UOL did not declare a dividend for H1, the same as last year.

Sustained demand from homebuyers is expected to extend development revenue growth into the near to medium term.

Some 5,527 new units, excluding ECs, were sold in the first seven months of 2025 – slightly more than double the sales in the same period in 2024. In August, developers sold more than 1,800 new units.

Apac Realty’s share price has risen 124 per cent year to date. RHB analyst Vijay Natarajan said: “We believe the rally still has legs, with sales momentum likely to continue on the back of attractive upcoming launches and firm buying sentiment.”

RHB maintained a “buy” call on Apac Realty with a higher target of S$0.54. It also raised its FY2025 earnings estimate by 5 per cent, and its FY2026 estimate by 3 per cent.

Phillip Capital’s head of research Paul Chew projects PropNex’s earnings will increase by 32 per cent to S$78.8 million for FY2025, citing strong Q3 sales with sell-through rates of 40 to 97 per cent for new projects launched in July and August.

Analysts also see further upside from the resale market. Chew noted that PropNex’s larger agency force has enabled it to complete more transactions internally, boosting efficiency and market share.

This helped lift its private resale revenue by 66 per cent on year to S$159 million in H1. PropNex also expanded its agent base by 982 to 13,618 – its largest intake in four years.

Apac Realty grew its agent count to 8,885, which should bolster market share and commissions, said CGS International analyst Lock Mun Yee. She raised her forecasts for FY2025 and FY2026 earnings per share by 50 to 60 per cent.

Ramped up supply

Higher supply from government land sales (GLS) will underpin the new project pipeline, transaction momentum and restock developers’ land banks.

Lim & Tan Securities analyst Chan En Jie noted that the confirmed GLS list this year comprises 9,755 units – around 50 per cent above the 2021-2023 average.

Phillip Capital’s Chew added that the 2026 pipeline will be propped up by GLS releases averaging 9,850 units annually from 2023 to 2025 – roughly double the five-year average from 2014 to 2019.

Residential heavyweights like CDL are actively replenishing land banks, positioning for sustained development activity.

Analysts at OCBC noted that CDL has announced more than S$1.5 billion in divestments in the year to date, and has so far redeployed capital acquiring three GLS sites for S$1.2 billion.

CDL’s net gearing stood at 70 per cent and cash declined to S$1.8 billion as at end-H1. But UOB Kay Hian (UOBKH) analyst Adrian Loh does not expect gearing levels to ameliorate in the near term.

Loh pointed to a slew of divestments planned over the next six to 12 months that should keep its balance sheet in check and potentially cut debt.

OCBC said: “Given robust capital recycling activities carried out in H1, the management hinted at the possibility of positive dividend surprises for the full-year.”

DBS is also optimistic, noting strong earnings visibility from largely pre-sold projects and an attractive pipeline. Zyon Grand, an integrated development on Zion Road, will come to market in Q4 2025, and a Lakeside Drive GLS project is slated for launch in Q3 next year.

UOBKH’s Loh said: “In the medium term, favourable interest rates and a robust pipeline (2,260 units) will underpin 2026 earnings growth.” UOBKH upgraded CDL to “buy” with a higher target price of S$8.50.

With a recent board tussle settled, OCBC reckons investors will continue to monitor CDL’s execution and future corporate governance practices ahead.

UOL’s residential revenue will be supported by robust sell-through rates and strategic land bank replenishment, said DBS.

The group’s projects are substantially sold “with an exciting line-up of residential launches over the next two years to add to income visibility”. Strong pre-sale numbers would be catalysts to watch for, DBS said. UOL has two major projects in the wings – Skye at Holland on Holland Drive and another at the Thomson View en bloc site.

Contributions from Watten House, Pinetree Hill, Meyer Blue, Parktown Residence, and the newly launched Upperhouse will be progressively recognised over the next three to four years, supporting earnings visibility, DBS noted.

UOL’s healthy net gearing at 0.25 times “provides ample financial flexibility to pursue value-accretive opportunities”. With the average developer gearing at 0.5 to 0.6 times, DBS reckons UOL would have more than S$5 billion in additional capacity and could fully debt-fund its redevelopment of Marina Square.

GuocoLand’s property development business is also seen as highly resilient, underpinned by strong pre-sales across most of its projects. Take-up at its recently launched Springleaf Residence was 92 per cent, despite the project’s untested location, with Lentor Mansion and Lentor Central Residences almost sold out.

“We expect the group to further strengthen its solid track record with the launch of four upcoming projects in its land bank,” DBS added. Faber Residence, Penrith at Margaret Drive, River Valley Green Parcel B and a Tengah Garden Avenue mixed-use project add over 2,000 units to its pipeline and should sustain earnings visibility.

While GuocoLand’s residential developments in China continue to face near-term headwinds, the group is sticking to its strategy of monetising existing units to pare debt.

DBS maintained “buy” calls on UOL and GuocoLand with higher targets of S$8.80 and S$2.50, respectively.