Following growth trend in Oz

Posted On Wednesday, 23 May 2001 03:01 Published by eProp Commercial Property News
Rate this item
(0 votes)

SA's R8bn listed property market is poised to see prolific growth in the next few years if it continues to follow Australian market trends.

Gerald NelsonGerald Nelson, Association of Property Unit Trusts (Puts) chairman, says the SA property investment market faces the same challenges and opportunities as the Australian market did 10 years ago.
These include a demand for greater liquidity, a decline in interest rates and relatively low and stable inflation.
Within a decade the Australian listed property-trust market grew from A5bn to A36bn in reaction to the demand for liquidity, and 70% to 80% of property is now listed.
'SA's total commercial investment property market is estimated to be in excess of R100bn ' says Nelson.
'Given stable economic fundamentals, if we follow the Australian trend there is no reason why the listed property sector should not grow to R50bn in the next three to five years.'
This growth will be driven to a certain extent by existing funds enhancing the size of their portfolios through the issue of new script.
However, Nelson says greater potential lies in the listing of new vehicles with a number of new players seeking to enter the market.
The direct property holdings of institutions and pension funds stand at about R60bn.
With the greater flexibility that listed property offers over direct property, there is every likelihood that a large proportion of these holdings could be transferred to the listed property sector in the short term. A comparison of total annual returns shows that Puts, with 27,9% over one year and 27,5% over three years, continued to outstrip the all share index at 0% and 13,2% and the all bond index at 20,1% and 18%.
Australia's property investment market has undergone a consolidation and comprises 30 listed funds, with a market cap of A36bn an average of A1,2bn per fund.

Last modified on Wednesday, 23 April 2014 09:22

Most Popular

Should you rent or buy your business premises?

Jun 23, 2022
Malusi Mthuli_FNB
This is a question that most business owners will face at some point in their journey.…

April 2022 Hotel Accommodation Income Statistics continue to show a very weak picture compared to pre-lockdown times.

Jun 23, 2022
Hotels Monthly Income 2022
The StatsSA release of April 2022 preliminary monthly tourism statistics show the Hotel…

South Africa’s inflation exceptionalism: can it last?

Jun 23, 2022
Carmen Nel
South Africa is often seen as a high-beta play, be it regarding financial market risk…

Hyprop continues to reduce debt and reposition its portfolios in SA and EE

Jun 30, 2022
Skopje City Mall Playground
Hyprop, which manages dominant retail centres in mixed-use precincts in key economic…

Vaal Mall rolls up its sleeves for pothole repairs

Jun 30, 2022
Vaal Mall crew busy repairing the various potholes making easier access to the Centre.
Vaal Mall is showing their commitment towards their community by stepping up to repair…

Please publish modules in offcanvas position.