According to the latest listed property overview from Catalyst Securities, the listed property sector also bettered its stellar performance in 2003, when total returns of 38% were recorded.

The listed property sector also outperformed the all share index, which recorded total returns of 25,4% for the full year in 2004.

Catalyst Securities MD Andre Stadler said the strong performance of listed property was due to the continued low interest rate environment and strengthening long bond prices.

The performance of listed property tends to track the performance of long bonds because they are both incomegenerating investments.

Stadler said there had also been an improvement in property market fundamentals, resulting in income distribution growth for the sector.

The top listed property sector performer for December was Spearhead Property Holdings, which posted total returns of 21,1%.

Catalyst said 70759 Spearhead linked units were traded in December.

Early last month Catalyst reported that the South African listed property index had recorded a total return of 33,62% for the year to date, outperforming the all share index, which had recorded a total return of 23,7% for the first 11 months of the year.

Stadler said that the listed property sector would continue to deliver income growth this year. He also said that he believed listed property was reasonably priced in the current interest rate environment.

Other property commentators said recently that they also expected the listed property sector to be a solid performer in the next 12 months.

Stadler said that property equity unit trust m Cubed Property Equity Fund which is managed by Catalyst and invests in the South African listed property sector was the leading performer in the asset allocation flexible property unit trust category, recording total returns of 39,75% against the sector average of 34,73%.