The R600bn FTSE-JSE SA listed property index (Sapy) is outperforming all other major asset classes having enjoyed its strongest January in more than a decade. But this sudden boost for the sector, which lost investors 25.26% — based on share price declines and dividends — in 2018, might not last. This performance was the worst in more than two decades. The sector was held back largely by the performance of four companies within the Resilient stable, which all came under pressure in January 2018 following a R120bn selloff of their shares. They had accounted for 40% of the sector. Some asset managers and hedge funds released reports wherein they accused the stable of market manipulation, insider trading and inflating profits. Fund managers say that overall the sector will be driven by income growth while real estate companies are wary of investing in a sluggish economy, which has been further hampered by a volatile rand and political uncertainty. The index, which includes the top 20 l...

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