A better global growth environment, combined with some current account improvement and better policy implementation might lead to an improved outlook for the South African economy in the year ahead, especially compared to last year.

Local analysts are cautiously optimistic about SA's listed property sector.

Wednesday, 11 December 2013 08:12

Volatile bond yields dampen returns on property

JSE's R249bn listed property sector delivers a muted 7.3% total return for the first 11 months of this year, some way off the 17.92% achieved by the All Share index over the same time.

High volatility in SA's listed property sector over the past year has largely been blamed on rising bond yields, which conventional wisdom says is bad for property returns. 

South Africa’s listed property sector finished the week ended 11 October 2013 largely unchanged despite a stronger Rand and lower bond yields. 

The volatility of the listed property sector over the past two weeks can be largely explained by movements in bond yields and the rand, and given the market’s close correlation to bonds, analysts say it may remain volatile in the short term.

South Africa’s listed property sector finally succumbed to a weaker Rand, higher bond yields and ‘private placement fatigue’ during the week ending 24 May 2013.

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