The listed property sector has recovered about 6,4% of its value on the back of a strengthening bond market.

The pendulum seems to be swinging back towards the sector through there could still be further price depreciation.

Physical commercial property market has not weakened as much as the listed property sector.

Rising interest rates continue to batter the listed property market, with the sector having now lost about 30% of its value since its peak in November.

Another big property deal has fallen through because of listed property price volatility and the caution of the banking industry, which is tightening funding requirements or increasing funding margins.

The Madison stable of listed property companies, including Madison itself, all issued cautionary announcements yesterday indicating they were considering a proposal that could see them merge into a single property fund.

In spite of double-digit distribution growth, the South African listed property sector has lost 24% of its value since November

The listed property sector’s underlying fundamentals still point to listed property as a solid investment, despite uncertainty on inflation and interest rates. Analysts expect at least double-digit growth for next year.

Blue-chip listed property loan stock company Hyprop Investments on Tuesday reported an 18,2% surge in distributions to 130c for the six months to June.

Strong property fundamentals, improved letting and cost containment helped boost Growthpoint Properties’ distributions 14,5% to 93,1c, a linked unit for the year to June