$PropNex(OYY.SG)

PropNex: Adapting to Singapore’s New Property Landscape

The upcoming removal of the 1km priority advantage for Primary 1 registration starting in 2027—affecting popular schools like Anglo-Chinese School (ACS) and Raffles Girls’ Primary—has raised questions about residential demand near top schools. However, PropNex’s latest analysis suggests this change will shift transaction patterns rather than diminish total volume.

Instead of stalling the market, the rule change is expected to drive activity in three distinct ways:

* Increased Resale Supply: Homeowners who bought specifically for school proximity may look to sell if the price premium no longer holds, boosting resale inventory.

* Broader Buyer Searches: Families are likely to broaden their search to further, more affordable districts, spreading deal flow across a wider area.

* Higher Rental Demand: Families seeking proximity may choose to rent instead of buy, supporting PropNex’s expanding private leasing market share, which rose to 43% in 1H2026.

Key Financial Highlights (1H2026)

* Revenue: S$603M (+0.7% YoY)

* Net Profit: S$40.9M (+3.1% YoY)

* Agency-Service Commission: S$360.5M (+6.9% YoY)

* Stock Price: S$1.76 (P/E ~19x, Dividend Yield ~2.8%)

Investment Summary: Hold, Not Exit

PropNex remains well-positioned due to its dominant market share (64.3% in transaction market share for 1H2026) and cash flow strength. While growth is normalizing after prior peaks and valuation sits above historical averages, the redistribution of housing demand ensures ongoing transaction volume. Existing investors may prefer to hold for stable income, while aggressive position building may require stronger earnings momentum heading into 2027.