Non-public houses within the River Valley/Orchard space in Singapore. Returning Singaporeans and expatriates have pushed rental demand in Singapore, in keeping with PropertyGuru’s CFO.
Lauryn Ishak | Bloomberg | Getty Photos
Singapore-based on-line property portal PropertyGuru posted a web lack of $7.4 million Singapore {dollars} ($5.3 million) for the quarter ended Sept. 30 — down from final quarter’s web revenue of SG$3.8 million.
However that is nonetheless decrease than the online lack of SG$9.6 million in the identical interval a yr in the past, and third quarter income grew by 47% yr on yr.
In the meantime, adjusted EBITDA for the third quarter improved to optimistic SG$5.7 million, up from an adjusted EBITDA lack of SG$1.5 million in the identical interval a yr in the past. EBITDA is a measure of profitability that reveals earnings earlier than curiosity, taxes, depreciation and amortization.
“Our third quarter outcomes illustrate that PropertyGuru has been capable of produce sturdy enterprise efficiency whilst a few of our core markets have begun to face headwinds from the difficult financial situations being skilled across the globe,” mentioned Hari Krishnan, PropertyGuru Group’s CEO and managing director.
Within the earnings name Monday night time, Krishnan cited difficult situations similar to Singapore’s rising taxes and stamp duties. In Vietnam, credit score for buying houses is now tougher to entry, he mentioned.
The web portal supplies data throughout the Singapore, Malaysia, Indonesia, Thailand and Vietnam marketplaces.
‘We stay bullish’
“Even with brief time period macro headwinds, we stay bullish on the long run prospects for PropertyGuru,” mentioned Joe Dische, the group’s CFO.
In an interview with CNBC’s “Squawk Field Asia” Tuesday, Dische pointed to tendencies within the Malaysia and Singapore property markets.
“We have seen some good exercise in Malaysia. The federal government has been supportive of lower-end and inexpensive houses. There have been some measures taken type of previous to the current election, to have some type of stamp obligation concessions … kicking in for first-time patrons. So we’re undoubtedly seeing some motion being taken there to help the market,” he mentioned.
Finance Minister Zafrul Aziz had mentioned in a funds speech to Parliament in early October that the nation will increase stamp obligation exemption to 75% from 50% on first dwelling purchases.
He mentioned returning Singaporeans and expatriates, in addition to delays in supply of build-to-order flats and renovation works in the course of the earlier phases of the pandemic, have pushed rental demand in Singapore.
Vietnam, however, has been cracking down on speculative exercise, making it troublesome for folks to entry credit score, mentioned Dische.
“This does have a knock-on affect on the atypical one that is attempting to buy a property. However I believe there was some motion towards that hypothesis which drives inflation in these markets. As affordability drops, some folks will wait and see and transfer into the rental market, growing costs and demand,” he added.
In October, the corporate made its first post-listing acquisition — Singapore-based dwelling providers know-how firm Sendhelper. PropertyGuru listed on the New York Inventory Alternate in March.
PropertyGuru shares are down 39% since its itemizing.
