Property indices shake-up
JSE looks set to introduce three new options which will create trading opportunities, writes Joan Muller
The JSE is expected to introduce three new indices to replace the current SA property index (Sapy) within the next three to four months, an eagerly awaited move which industry players believe will further boost the size and stature of listed real estate as an asset class. The JSE embarked on a process to improve existing property indices two years ago as the general view was that the benchmark Sapy no longer accurately represented the South African property sector. The Sapy was launched in 2003 at a time when property still formed a small portion of the JSE’s overall market cap. Back then, the sector was highly illiquid and not widely covered by investment analysts. However, 14 years on the market cap of the sector has ballooned to nearly R500bn and property is now widely recognised as a major asset class alongside general equities, bonds and cash. Moreover, the rush of new property listings in recent years has pushed the JSE’s bevy of property counters to close to 50. Yet the Sapy ...
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