Investors can now access data on residential property owned by companies
Absa has sponsored the development of MSCI’s inaugural SA residential property results, based on a sample portfolio of property worth more than R17bn
MSCI is providing data on residential property assets owned by listed and unlisted companies for the first time, which will help investors decide which stocks to invest in. Absa sponsored the development and launch of MSCI’s inaugural South African residential property results, which is based on a sample portfolio of residential property worth more than R17bn. Residential property is growing in popularity as institutional investors want to buy into funds that have exposure to the sector. They say South African demand for affordable housing is staggering and that this will fuel returns that can compete with those derived from other property types. "The South African residential sector’s total return in 2017 was 12.3%. This comprised 3% capital value growth and 9% income return, which matches the total return of the industrial and retail sectors and outstripped the 10.3% of offices for the year. Furthermore, net operating income yields of 8.2% were significantly higher than the other ...
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