The JSE’s property sector has grown significantly over the past 10 years and has firmly established itself as a separate asset class on its own. The market cap of the SA listed property index (Sapy) increased from around R78bn at the end of June 2007 to around R363bn at the end of June 2017 — listed property’s weighting in the shareholder weighted (Swix) all share index simultaneously rose from 3.7% to 7.7% over the same period. The growth in the sector over the past decade can be attributed to the outperformance of listed property, relative to equities and bonds, both on an absolute and risk-adjusted basis. This has led to further interest in, and investment into, property. Real estate investment trust (Reit) legislation, which was introduced in 2013, has further enhanced the appeal of property stocks, specifically to international investors as it is a structure that is widely accepted and understood globally.Since 2010, noticeable trends in the SA listed property sector include a ...
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