Strong global and local economic growth, together with elevated liquidity levels further compounded the strong performance of investment properties and the listed sector as investors chased yields.

While tempering midyear, even the 5% increase in the repo rate since June 2006 has had little impact on investment property pricing – spurred on by demand from both the listed and private sectors. Investors have been bullish as the yield compression resulted in the re-rating of their property portfolios leaving their gearing position favourable.