Interest rate sensitive securities like listed property were also sold off aggressively by investors who were worried that bond yields would rise further. 

About R34bn has been wiped off the local listed property sector’s market capitalisation since the middle of last month, which, analysts say, will make many property deals less viable than before.

Repricing of the listed property sector will make it less attractive for unlisted real estate companies and developers to bring their shopping centres, offices and warehouses to the JSE.

Thursday, 13 June 2013 19:00

Listed Property sector bounces back

South Africa’s listed property sector bounced back during the week ending 7 June 2013, despite a further increase in long bond yields. 

Acucap reports a 6% growth in distribution of 156.22c for the six months ended March 2013

Thursday, 13 June 2013 12:23

JSE property funds adding to portfolios

Listed Property funds grow property portfolios in highly competitive market.

Private placement 'fatigue' has been partly blamed for the sharp sell-off in property stocks over the past two weeks.

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 continued its slide during the week ending 31 May 2013, as the Rand breached R10/US$ and bond yields moved sharply higher. 

Listed property prices have seen a rapid correction over the past two weeks, although analysts say this provides opportunities for both investors and companies themselves.

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