SINGAPORE - PropNex has named a deputy chief executive officer and announced other management changes as part of what the mainboard-listed property agency says is a remaking aimed at helping the company become an even more dominant player in Singapore and the region.

The agency, which has over 45 per cent of the Housing Board and private housing launches and resale market in Singapore, unveiled a management restructuring, effective immediately, which sees executive director Kelvin Fong elevated to deputy CEO, effectively becoming the heir apparent to the executive chairman and CEO, Mr Ismail Gafoor.

It also said senior vice-president Eddie Lim has been promoted to chief agency officer. PropNex stalwarts Bobby Sng, Cijay Tew, Marcus Luah, Benjamin Tan and Ken Ng have also been moved up as agency vice-presidents, overseeing key aspects of training and operations.

PropNex traces its roots to 1996, when Mr Gafoor and his wife Nooraini Noordin set up a property agency called Nooris Consultants. It subsequently merged with Prulink Realty to become PropNex. Over the years, PropNex grew both organically and via mergers and additions as smaller agencies joined up. One of the biggest was the 2017 merger with Dennis Wee Realty.

Today, it is the biggest property agency in Singapore, with a team of about 12,000 agents, almost 40 per cent more than that of its next biggest competitor ERA. It also has about 3,000 agents in Malaysia, Indonesia and other regional markets.

Mr Gafoor said the current top management changes were part of a strategy to ensure that PropNex would be led by a younger and more energetic team, driven by technology, training and data. It would also support the company’s strategy to grow the size of its team and market share.

“We are building the systems, structures and processes to ensure that PropNex thrives over the next 10 to 20 years,” he told The Straits Times. “We want to grow our team of Singapore agents to 15,000 by 2025 and capture 60 per cent of the market share here while also expanding our overseas presence.”

Despite the changes, Mr Gafoor, 60, said he expects to remain at the helm of the company for several more years, helping to steer its growth.

The management restructuring also comes as more disruptors enter the market, a point which Mr Gafoor acknowledged.

He said: “Indeed, we are seeing many tech-driven property platforms and apps coming into the market in search of a slice of the pie.

“However, the real estate market in Singapore is complex. Big money is involved. Lots of rules. Any wrong move can be costly. So one needs to pick an agency which can provide a full spectrum of services – one which has the technology, data and professional advisory capabilities. Agents must even be able to do financial assessments for clients.”

During an hour-long interview with ST, Mr Gafoor also addressed some recent developments in the market.

On whether the recent crackdown on money laundering activities by some foreigners has an impact on the property market, especially at the higher end of the spectrum, he said: “Singapore is an attractive hub for finance, technology, biomedicals and a host of other businesses of the future. As such, its property sector will always be vibrant and attract both local and foreign participants. The rental market reflects this.”

He added: “And as the economy continues to grow and local wealth continues to build up, Singaporeans themselves will seek bigger and better properties.”

Mr Fong, 48, said that for higher-end properties, the narrowing price gap between resale properties in the core central region (CCR), which covers prime districts 1 to 4, and 9 to 11, and new launches in the outskirts – the rest of central region (RCR) and the outside central region (OCR) – is prompting Singapore buyers to eye prime locations.

“In 2021, CCR properties used to go at around $2,700 per sq ft, while RCR was at about $1,500 psf,” he said.

“Today, new launches in RCR are being priced at well over $2,000, and at about $2,500 psf. So resale properties in CCR, even at $3,000 psf, are starting to look attractive to Singaporean buyers,” he added.

Mr Gafoor said in his interview that the changes to the public housing model announced by Prime Minister Lee Hsien Loong at the National Day Rally on Sunday were timely and would ensure more sustainable growth for the property market.

“What this does is make BTO (Build-To-Order) homes in prime locations more affordable to those who previously could not afford them,” he said. “This will prevent the building up of elite enclaves within HDB precincts. The intent is to make all public housing affordable to the masses.”

PM Lee said on Sunday that from the second half of 2024, HDB projects would be classified not by mature or non-mature estates, but by location attributes with three categories. Flats in choice locations would get higher subsidies, but also require longer minimum occupation periods of 10 years.

PropNex’s earnings for the January-June 2023 period fell 18 per cent to $22.05 million while revenue dropped 23 per cent to $364.28 million, compared with the same period in 2022, but Mr Gafoor said the company is seeing strong pickup in activity going into the second half.

He said: “Yes, the first half was somewhat slow, but the full year is looking good. While I cannot provide too much guidance, I would say the second half will definitely be better for us.”

Indeed, data suggests that PropNex snagged between 42 per cent and 50 per cent of all agency sales between April and July at new project launches such as Tembusu Grand, Blossoms by the Park, Continuum, The Myst, Lentor Modern and Grand Dunman.

One factor that is spurring more buying interest of late is the pullback in interest rates, according to Mr Gafoor and Mr Fong.

Mr Fong said: “The two-year fixed rate has fallen to 3.25 per cent, from 4.25 per cent, and this is drawing out buyers. Also, by going for new launches, buyers don’t have to cough up a lump sum upfront.”

Both PropNex executives believe that as long as the Singapore economy continues to be robust and grow, the demand for housing will remain strong, with Singaporean buyers driving the market.

Mr Fong added: “The aspirational aspect of home purchase is very much intact.”

PropNex, which listed on the Singapore Exchange in July 2018, is known for rewarding shareholders with relatively generous dividend yields of 7 per cent to 9 per cent. The stock closed at 95 cents on Wednesday, prior to the announcement of the senior management changes.