SINGAPORE (Aug 5): APAC Realty reported a 56.8% plunge in 2Q19 earnings to $3.3 million from earnings of $7.7 million during the same quarter last year.

Revenue for the group fell 29.8% to $85.7 million in 2Q19, from $122.0 million in 2Q18.

This was maintained due to a 29.2% decrease in brokerage income from resale and rental of properties to $60.5 million and a 32.9% decline in income from new home sales to $23 million.

In line with the decrease in total revenue, cost of services fell 30.5% to $75.1 million, down from $108.1 million in the preceding year. 

This led to the group recording a gross profit of $10.5 million for 2Q19, a 24.7% drop from $14 million in 2Q18. 

Total operating expenses increased by 37.7% to $6.5 million from $4.7 million a year ago, due, among other items, to increases in personnel as well as marketing and promotion costs.

As at end June, the group’s cash and cash equivalents stood at $24.8 million.

On the supply front, the total number of unsold private residential units (including ECs) has reached 35,538 as at end June, and the URA foresees a potential supply of 7,100 units (including ECs) from both Government Land Sales and en bloc sales sites which have yet to be granted planning approval.

The vacancy rate of completed private residential units has also come down to 6.4% from a high of 8.9% in end June 2016.

In its outlook statement, APAC Realty noted that the property cooling measures introduced in July last year will continue to affect the underlying demand for residential properties in Singapore. It also highlighted how the Singapore property market may be affected by adverse global economic conditions and mortgage interest rate changes.

Shares at APAC Realty closed 2.5 cents lower at $0.52 on Monday.