South Africa’s listed property sector finally succumbed to a weaker Rand, higher bond yields and ‘private placement fatigue’ during the week ending 24 May 2013.

Many listed property companies are converting or considering converting to real estate investment trusts (REITs) in South Africa since the new tax regime for list REITs was enacted.

Despite further Rand weakness and rising long bond yields, South Africa’s listed property sector gained 1.2% during the week ended 17 May 2013. 

Although commercial property pundits do not expect a crash in the sector following the industry’s strong run‚ some form of a correction could occur given a bond market that is unlikely to strengthen further.

The listed property sector has returned 18.8% for the year-to-date, significantly outperforming both the bond and equity markets (week ended 3 May 2013). 

Commercial property investors and anyone interested in understanding SA’s listed property sector in a global context should plan to attend the SA Property Owners’ Association (SAPOA) International Convention and Property Exhibition later this month at Sun City.

Following trends in the US REIT market may just give you the edge here in South Africa as REITs begin to manifest.

South African listed property sector has undergone some dramatic changes over the past 13 years, becoming increasingly sophisticated.

South Africa’s listed property sector declined by 1% during the week ending 15 March 2013. This comes on the back of a 7% plus gain so far this year.

The huge shortage of student accommodation and decent housing close to places of work has led to property group Citiq purchasing two sets of grain silos in Newtown, with the intention of converting them into residences.