Private homes in the River Valley / Orchard area of Singapore. Returning Singaporeans and expats have increased rental demand in Singapore, according to PropertyGuru’s chief financial officer.
Lauren Isaac | bloomberg | Getty Images
Online real estate portal based in Singapore PropertyGuru It reported a net loss of S$7.4 million ($5.3 million) for the quarter ended September 30 – down from last quarter’s net profit of S$3.8 million.
But that’s still down from a net loss of S$9.6 million in the same period last year. Third-quarter revenue grew 47% year-over-year.
Meanwhile, adjusted EBITDA for the third quarter improved to S$5.7 million, up from an adjusted EBITDA loss of S$1.5 million in the same period last year. EBITDA is a measure of profitability that shows earnings before interest, taxes, depreciation, and amortization.
“Our third quarter results demonstrate that PropertyGuru managed to deliver strong business performance even as some of our core markets began to experience headwinds from the challenging economic conditions experienced around the world,” said Hari Krishnan, CEO and Managing Director, PropertyGuru Group. .
On Monday night’s earnings call, Krishnan cited difficult circumstances such as rising taxes and stamp duty in Singapore. In Vietnam, he said, it is now more difficult to get credit for home purchases.
The online portal provides information across the markets of Singapore, Malaysia, Indonesia, Thailand and Vietnam.
“We are still optimistic”
“Even with a short-term macroeconomic headwind, we remain optimistic about PropertyGuru’s long-term prospects,” said Joe Dish, Group Chief Financial Officer.
In an interview with CNBC’s “Squawk Box Asia” on Tuesday, Dische pointed out the trends in the real estate markets in Malaysia and Singapore.
“We’ve seen some good activity in Malaysia. The government has been very supportive of low-cost, affordable homes. There were some actions that were kind of taken before the last election, to get some kind of stamp duty concessions … for first-time buyers. So we’re definitely seeing some The actions that are being taken there to support the market.”
Finance Minister Zafar Al-Aziz had said in a budget speech to Parliament in early October that the country would raise the exemption from stamp duty to 75% from 50% on first home purchases.
He said the return of Singaporeans and expats, as well as delays in public housing construction and renovation work during the early stages of the pandemic, had driven up demand for rentals in Singapore.
Vietnam, on the other hand, is cracking down on speculative activity, which makes it difficult for people to get credit, Dech said.
“That has a knock-on effect on the average person trying to buy a property. But I think there has been some measure against that speculation that is driving inflation in those markets. With affordability going down, some people will wait and see to get into the rental market and increase prices and demand.”
In October, the company made its first post-listing acquisition – Singapore-based home service technology company Sendhelper. PropertyGuru listed on the New York Stock Exchange in March.
PropertyGuru shares are down 39% since listing.