The listed property sector is expected to deliver solid earnings growth of 10%-12% next year. But along with Redefine are other companies that have, over the past year, consistently performed above the market. These include Hyprop Investments, Resilient Property Income Fund, Octodec and Premium. These companies are also expected to continue delivering strong distribution growth next year. It seems listed property in general remains a good bet for investors next year.
Although the heady days when the sector was experiencing boom conditions are not expected next year, double-digit earnings growth is still nothing to be sneezed at. Companies with large exposures to office and industrial property are expected to do particularly well. Retail property is also expected to perform well.
Commercial property in general appears a better bet for investors than residential property, a sector in which price growth has been on a downward trend for the past year.