This is the view of Mike Flax, CEO of listed property loan stock company Spearhead Property Holdings. He told the annual Top Property Conference in Melrose Arch on Thursday that the listed property sector was expected to continue to appreciate but at a much slower rate than it had over the six-year boom period.

"This downturn in the listed property market that we've seen over the past month is a hiccup in a long-term bull market."

The prices of listed property funds have fallen between 5% and 10% since May 12 as the property sector, along with other asset classes, has weakened in the wake of higher US interest rates, which have caused lower tolerance for emerging market risk.

The property funds with large market capitalisation suffered the biggest dips in unit prices during this period. But most analysts are optimistic that the listed property sector will bounce back because property fundamentals are strong and are improving.

But Flax said that there were several factors supporting the long-term sustainability of the listed property sector.

On a global level, pension fund managers were looking for more listed property investment opportunities, and pension fund managers, including in SA, had set increased targets for investment in listed property.

He said retired people preferred to invest in listed property because of the secure, regular income it delivered.

The number of retired people was growing, he said. It had been estimated that in the US by 2020 17% of the population would be older than 65 years. In Japan that figure was 27%. This all augured well for listed property on a global level, Flax said

Therefore, the dip in the listed property market should be viewed as "a correction. But still the long-term trend is upward".

Flax said that even during this period of uncertainty and pullbacks in the market, there was still more demand than supply for listed property.