This volatility, which has impacted almost all shares in all markets internationally – with the exception of resources – is expected to continue at least another 12 months. Importantly, when compared with the performance of listed property in other global markets, South African listed property has fared well and is still providing positive income returns considering it has come off a high base.
Furthermore, the volatility presently only poses a risk to the capital element of listed property, which also provides annuity income.
Property fundamentals remain strong resulting in favourable rental income which provides the cash flows required for distributions to investors – continuing property loan stock’s performance as a source of annuity income.
In this market, as is the same with all shares and equities across every sector, listed property is best suited for the investor with a longer-term outlook.
