Behind the property rebound
Property stocks are likely to hold on to recent gains, but a full recovery depends on how fast the economy bounces back
The beleaguered property sector’s sharp and unexpected rally earlier this month caught many off-guard. Yet the SA listed property index’s (Sapy) rebound of close to 25% in the first 10 days of June was long overdue.
No doubt it was becoming increasingly difficult to ignore the unbelievable discounts to NAV of 50% plus and the sky-high yields, exceeding 30%, offered by many traditional blue chips.