Fund managers are confident that the listed property sector will make a sharp recovery in 2019, saying the sector’s offshore exposure, as well what looks like the start of a recovery of consumer confidence in SA, could support it. They are forecasting that the FTSE/JSE SA Listed Property Index (Sapy) should deliver double-digit total returns in 2019. The index includes the top 20 liquid real estate companies by market capitalisation with a primary listing on the JSE and has lost close to 26% in 2018 so far. Total return includes both capital and income growth. Fund managers said the recovery should take place barring any severe shocks to economic growth such as any potential fallout at struggling national retailer Edcon, which occupies significant space in most shopping centres. Mvula Seroto, an investment analyst at Catalyst Fund Managers, said his group expected the real estate sector to deliver total returns of 14%.

The Sapy includes mostly real estate investment trusts (Re...

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