Though there has been something of a recovery in property share prices in recent weeks after three months of negative returns, the sector is by and large still looking rather cheap. This is particularly true for property stocks that generate all or most of their earnings in SA, with at least a dozen local counters now trading at dividend yields north of 10%. That’s attractive compared with the average 6%-7% that income-dependent investors are getting on cash in the bank, or the just more than 8% on offer from government bonds. In fact, the yield spread between government bonds and SA-focused property stocks is the highest it has been in 20 years, says Bridge Fund Managers chief investment officer Ian Anderson. Despite the 15%-18% recovery recorded in the year to date by the likes of Accelerate Property Fund, Octodec Investments, Emira Property and Indluplace Properties, Anderson says most local property counters still offer significant value relative to bonds and equities. Many are ...

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