People should take advantage of investing in commercial property during the downward trend in the interest rate cycle before the lagged effects take over, says Craig Hallowes, spokesman for the Association of Property Unit Trusts.

SA is soon to follow the international trend whereby property loan stock companies and property unit trusts will be structured as real estate investment trusts (the REIT model), with final legislation hopefully in place next year.

'Excitement' has been building in property circles about the impact that the Public Investment Corporation (PIC) property investment strategy should have on the local property landscape. While some underpin can be expected, but it may not live up to initial expectations

The latest interest rate hike may lead to a mild dip in the outlook for commercial property but this is likely to be short-lived and represents a buying opportunity

The Budget presented by the Minister of Finance Trevor Manuel to parliament on 21 February has some very positive implications for the listed property market.

What does the future hold for PUTs?

From being the long-standing star sector just three months ago, listed property has taken a massive knock since interest rates were raised a few weeks ago. But while listed property unit trusts have fallen sharply down the performance tables, they could now be offering much better value.

Listed property unit trusts, which are individually listed funds consisting of a portfolio of commercial properties, outperformed the direct or fixed-property market last year, delivering a total return of 37,5% to investors.

There is still very much a place for listed property in the form of property loan stocks and property unit trusts in one's portfolio - particularly if one is looking for increased income.

Market confidence in Property Unit Trusts Keeps bond yield gap tight.