Strong property fundamentals and distribution growth from listed property companies had helped the sector recover. 

Andre Stadler, MD of Catalyst Fund Managers, said the listed property sector had delivered an annual total return, which included capital appreciation and income distributions, of 39,4% a year.

He said strong distribution growth from listed property companies reflected the positive property fundamentals.
In general, property fundamentals remained strong, and Stadler expected double-digit income growth from the listed property sector this year. But the total return for the sector would be “subject to the interest rate environment towards the end of the year”.

The sector, which experienced a boom over the past four to five years, peaked last year in early May and started losing value, first as a result of successive interest rate hikes in the US and later general emerging-market jitters followed by the first interest rate hike in SA last year.