By M. Marin
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HDB sales volume up in 2024 …
Ohmyhome Ltd (NASDAQ:OMH), a Singapore-based technology company that operates an online real estate platform, has experienced substantial momentum, reflecting the ongoing strength of the domestic property market and its growth initiatives. For example, resale prices and volume sales of Housing and Development Board (HDB) units rose 2.5% and 20%, respectively, in 3Q24, according to CNBC, which notes that the majority of people reside in government subsidized HDB units.
Singapore goal to increase country’s housing; units coming available for sale fluctuates
The Singapore government has enacted measures to increase the country’s long-term housing stock, but in the short-term, units coming available for resale fluctuate. Resale prices of HDB units are expected to increase some 4% to 6% in 2025, according to the Straits Times, with lowest number of units expected to be available on the resale market in 11 years. The disequilibrium of demand for units compared to supply could drive demand for OMH services, in our view.
During 3Q24, OMH’s brokerage GTV grew 51% year-over-year and its renovation contracts advanced 403%. The company attributes the latter to rising customer interest in its renovation solutions. The company had previously indicated that the renovation business benefitted from demand from more office and residential projects.
The company its expansion into the property management space strengthens its position within the Singapore real estate market and expands its service offerings, advancing its goal to create a leading one-stop-shop property “Super App” and potentially expanding its overall target market within Singapore’s private residential segment. Moreover, the property management space is significantly less seasonal compared to OMH’s original transaction business. It generates a recurring revenue stream that is not dependent on housing transactions and which is also expected to help accelerate overall consolidated growth.
Property management units grew 23% sequentially from 7,560 to 9,283 in 3Q24. The company attributed this growth to its expanded presence in the Property management space following the acquisition of property management company Simply Sakal in late 2023 and increasing value of the services its property management segment offers.
The company’s goal is to continue to increase the number of units under management, which Ohmyhome believes will contribute to growing Ohmyhome Property Management revenue and consolidated results, in part reflecting cross-promotional opportunities as a growth driver. This goal likely has a positive tailwind from actions by the Singapore government. According to Singapore’s Urban Redevelopment Authority (URA), the government has taken measures to increase the country’s housing stock.
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