With the listed property sector performing as well as it has recently, it may be time for investors to start thinking of taking profit and selling their units in certain property funds, says Andisa Securities property analyst Len van Niekerk.

Listed property prices could start to drop again and investors would lose the opportunity "to lock in their profit", Van Niekerk said yesterday.

There was a risk that longbond yields would start rising and, because the performance of listed property tends to track long-bonds, their yields would rise. As a result, prices of longbonds and listed property counters would fall. Long-bond yields drop when prices rise.

Because listed property offers greater returns at a higher risk, it trades at higher yields than bonds.

Van Niekerk said some of the property funds looked overvalued and investors should consider taking profits now. These included Grayprop (trading at R3,15), Hyprop (R12,60) and Growthpoint (R6,15).

Business Day