Despite adverse market conditions, property fundamentals should remain fairly strong and unit holders can expect reasonable growth in distributions for the year to March 2009, says property loan stock company Vukile.

In the company's 2008 annual report, chairman Anton Botha says while tougher business conditions will no doubt have a negative effect on the demand for space, these same conditions will also limit the supply of space and should therefore continue to put upward pressure on rentals.