During the month the recorded CPIX and PPI figures were higher than the consensus expectations and inflation continues to remain outside the inflation target band of 3-6%. The capital markets provided little support for the SA listed property sector with the R157 long bond yield weakening from 9.17% to 9.24% during March.

Certain economic indicators (i.e. slowing private credit demand) have been positive for the inflationary outlook although the market appears to be pricing in a 70-80% probability of a further 50bps repo rate hike when the Monetary Policy Committee meets in April.

Corporate activity has characterised the SA listed property sector for numerous months. At the end of March, 11 out of 25 funds were trading under cautionary announcements relating to merger and acquisition activity....