That view differs from a month ago when the general consensus in the market was that there would be at least a 50-basis-point increase in the rate.

That's according to Angelique de Rauville, managing director of ProVest Management. She says there is a strong correlation between listed property stocks and interest rates and this change in market sentiment has driven prices upwards in the past couple of weeks. Some have gained more than 10%.

'There are a number of new players in the market driving prices upwards,' she says. 'Some of these players are limited in their knowledge of the sector or are limited to investing in only a handful of stocks. These managers are driving prices upwards in a select few counters.'

De Rauville says this is likely to create a vacuum with some of the more undervalued stocks being re-rated in line with the rest of the market.

'A further re-rating and growth in market capitalisation of the listed property sector is likely,' she says.

The recent rally in listed property stocks is likely to benefit the growth of the listed property sector as yields on listed property stocks fall in line with physical property yields and cap rates.

That would imply that physical property portfolios could be listed without there being any diluting effect on earnings. Similarly, already listed property companies could start acquiring quality properties for paper without there being any adverse impact on earnings.

De Rauville says listed property in the current market is a relatively safe investment.

'The recent strengthening of the rand implies that inflation figures are set to improve. Lower inflation figures could mean that interest rates would at least be maintained. Any downward movement in interest rates would trigger off a further re-rating of the sector. A stable or decreasing interest-rate environment would be good for listed property,' she says.

But she cautions investors, saying there are always risks associated with investing in shares and that listed property is no exception.