However leading players expect the sector to continue to grow in strength and performance into the long term with the retail sector in favour.

Monthly returns for the SA listed sector as a whole for August reached 2.6% compared with 1.4% in July. Property loan stocks in particular posted a return of 2.5% in August, up from 1.3% in July.

This was in contrast to the -1.8% achieved in August by the All Share Index.

The highest returns in August were achieved by property loan stock Fortress B, with a return of 17.6%. Fortress B also posted the best year-to-date performance to August, with 51.5% according to PLSA.

However, the sector is carefully tracking the All Bond Index, which reported a 7.4% return in August.

"The risk lies in rising bond yields," said Keillen Ndlovu, head of property funds for Stanlib.

"Listed property and the bond market are highly correlated because bonds have the ability to generate income - like property - and can also be predicted with relative certainty."

The next move in bond yields is generally seen up, though not this year.

Overall, listed property returns easily outpaced inflation, which meant the sector was a good hedge against inflation, according to Norbert Sasse, Chairman of the PLSA.

Two other loan stocks are achieving double-digit returns for the year to date: namely, Acucap and Fortress A.

"The retail sector - and particularly bigger shopping centres - continue to outperform the office and hospitality sectors, which are still feeling the effects of a weaker economy and over-supply," Ndlovu explained.

The SA listed property sector is fast approaching R140 billion in market capitalisation.