Listed property sector facing happier days
It appears that property punters are returning to the market to cash in on cheap buying opportunities
Is investor sentiment in the battered listed property sector finally on the mend? There’s probably still some way to go, but it appears that property punters are returning to the market to cash in on cheap buying opportunities. The South African Property Index (Sapy) was up more than 2% over the past week, bringing the total gains since the index hit a three-year low on April 4 to 7.2%. The Sapy is still down about 16% from the end of 2017, when it reached a high of 691 points. But the market appears to have stabilised following the Resilient group of companies’ sell-down, which was triggered by allegations of insider-related trading and concerns about its cross-holding structure and black economic empowerment (BEE) scheme.The index was further dragged down by a stronger rand, which has put pressure on the share prices of some offshore property counters. April’s rebound has been supported by UK and European mall owner Hammerson, which rallied 13% last week after withdrawing its supp...