Private home in the River Valley/Orchard area of Singapore. According to PropertyGuru’s CFO, returning Singaporeans and expatriates are driving demand for rentals in Singapore.
Lauryn Ishak | Bloomberg | Bloomberg | Getty Images
Online real estate portal based in Singapore property guru posted a net loss of S$7.4 million ($5.3 million) for the quarter ended 30 September. This is down from a net profit of S$3.8 million in the previous quarter.
However, it was still lower than a net loss of S$9.6 million in the same period last year, with Q3 earnings up 47% year-on-year.
Meanwhile, Adjusted EBITDA improved in the third quarter 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 and shows earnings before interest, taxes, depreciation and amortization.
said Hari Krishnan, CEO and Managing Director of PropertyGuru Group. .
Speaking on Monday night’s earnings call, Krishnan cited a difficult situation, including tax increases and stamp duty in Singapore. In Vietnam, credits to buy homes are now hard to come by, he said.
Our online portal provides information on marketplaces in Singapore, Malaysia, Indonesia, Thailand and Vietnam.
Group CFO Joe Dische said: “Despite the near-term macro headwinds, we remain bullish on PropertyGuru’s long-term outlook.
In an interview with CNBCsquawk box asiaOn Tuesday, Mr Dish pointed to developments in property markets in Malaysia and Singapore.
“We have seen some good activity in Malaysia. The government has favored low-end and affordable housing. , some measures have been taken…so there is no doubt that some action is being taken to support the market,” he said.
Finance Minister Zafrul Aziz said in his budget speech to parliament in early October that the country would increase the stamp duty exemption on first home purchases from 50% to 75%.
He said returning Singaporeans and expatriates, as well as delays in custom home deliveries and renovation work in the early stages of the pandemic, have boosted rental demand in Singapore.
Meanwhile, Vietnam has cracked down on speculative activity, making it difficult for people to access credit, Dische said.
“This has a knock-on effect for ordinary people looking to buy property. But I think there has been some action against speculation that causes inflation in those markets. Some people will wait and see, we’ve entered the rental market and prices and demand are rising,” he added.
In October, the company made its first acquisition since going public. That’s his Sendhelper, a Singapore-based home service technology company. PropertyGuru said he went public on the New York Stock Exchange in March.
PropertyGuru’s stock has fallen 39% since going public.