Caution first in property
Mistakes more painful and the risk of overpaying is rising, industry participants warn
Listed property owners and managers are being cautious in domestic and offshore markets, where it is becoming easier to misjudge asset prices. Investec Property Fund (IPF) says it is best to be cautious in a challenging property market. Locally, property prices are still too high. Internationally, it is easier to overpay than it was three years ago. "It’s become more difficult to make returns in listed property, here and abroad. You have to find the right country and the right opportunity within that country. That could mean investing in a town, a specialised asset type or in a certain mix of assets," IPF CEO Nick Riley said last week. "Also, in developed markets mistakes are biting harder. Money isn’t as cheap as it used to be, with interest rates set to rise in various parts of Europe. We are being careful with the timing of our next investments here and abroad," said Riley. IPF’s assets are worth about R18.8bn. While the company has grown steadily, it has been careful with respec...
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