SOUTH African listed property was the second-best performing asset class last month, returning 6,68%, beaten only by equities, which recorded a total return of 8,05%, but the sector’s outlook for the year is still uncertain.

Redefine Properties' planned acquisition of Hyprop Investments has been set back after Hyprop's board recommended that shareholders reject the offer.

Redefine Properties says it will probably still be earning fees from Hyprop Investments after the termination of its consultancy agreement with the company.

Although SA’s listed property as an asset class returned a negative 0,25% last month, the sector is still an attractive alternative to cash and bonds and was outperformed only by equities in 12 months.

SA's listed property index is holding its own against the best performers with total returns of 5,88% last month only beaten by the North American real estate market, which returned 6,84%.

The SA listed property index recorded a total return of -2,98% last month, with an improvement in investor risk appetite resulting in equities outperforming property as an asset class.

Last Tuesday Growthpoint’s price leapt 9,9% to R15,50 on a record turnover of 30m shares. This when the listed property sector lies moribund on the margins of the world’s unravelling financial markets.

The pendulum seems to be swinging back towards the sector through there could still be further price depreciation.

Listed property sector can expect a quiet year due to property price volatility.

Most analysts say SA funds will stay firm in 2008, but some aren't so sure