Private houses in the River Valley/Orchard area of Singapore. Returning Singaporeans and expats have boosted rental demand in Singapore, according to PropertyGuru’s CFO.
Lauryn Ishak | Bloomberg | Getty Images
Singapore-based online property portal PropertyGuru posted a net loss of SG$7.4 million ($5.3 million) for the quarter ended September 30, down from last quarter’s net profit of SG$3.8 million.
But that’s still lower than the SG$9.6 million net loss in the same period a year ago, and third-quarter revenue was up 47% year-on-year.
Meanwhile, Adjusted EBITDA for the third quarter improved to SG$5.7 million from an Adjusted EBITDA loss of SG$1.5 million in the same period a year ago. . EBITDA is a measure of profitability that shows earnings before interest, taxes, depreciation and amortization.
“Our third quarter results illustrate that PropertyGuru was able to deliver strong business performance even as some of our core markets began to experience headwinds from the challenging economic conditions around the world,” Hari said. Krishnan, CEO and Managing Director of PropertyGuru Group. .
During the earnings call on Monday evening, Krishnan cited tough conditions such as rising taxes and stamp duties in Singapore. In Vietnam, credit for home purchases is now more difficult to access, he said.
The online portal provides market information for Singapore, Malaysia, Indonesia, Thailand and Vietnam.
“We remain optimistic”
“Even with some short-term macro headwinds, we remain optimistic about PropertyGuru’s long-term prospects,” said Joe Dische, group chief financial officer.
In an interview with CNBC’s “Squawk Box Asia” on Tuesday, Dische highlighted trends in the property markets in Malaysia and Singapore.
“We’ve seen good activity in Malaysia. The government has been supportive of low-end, affordable homes. Some kind of action was taken before the recent elections, to have some kind of stamp duty concessions…for first-timers. -first-time buyers. So we’re definitely seeing action there to support the market,” he said.
Finance Minister Zafrul Aziz had said in a budget speech to parliament in early October that the country would increase the stamp duty exemption to 75% from 50% on first home purchases.
He said returning Singaporeans and expats, as well as delays in the delivery of built-to-order apartments and renovations during the early stages of the pandemic, boosted rental demand in Singapore.
Vietnam, on the other hand, has clamped down on speculative activities, making it difficult for people to access credit, Dische said.
“It has an impact on the ordinary person trying to buy a property. But I think there has been some action against this speculation that is fueling inflation in these markets. As affordability goes down, some people will wait and see and enter the rental market, increasing prices and demand,” he added.
In October, the company completed its first post-listing acquisition – Singapore-based home services technology company Sendhelper. PropertyGuru was listed on the New York Stock Exchange in March.
PropertyGuru shares are down 39% since listing.