The sharp sell-off of a number of blue chip property stocks since January, including the Resilient stable of companies and pure rand hedge counters such as MAS Real Estate, Sirius Real Estate, Intu Properties and Hammerson, has dragged the South African listed property sector down more than 16% year to date. Last year, property stocks delivered an impressive 17% average total return. Share price weakness has created buying opportunities for investors who are prepared to sit out current volatility. Metope CEO Liliane Barnard comments.
Investors are seeking more exposure to property funds that offer some level of specialisation, says Evan Robins of Old Mutual Investment Group. Property groups focused specifically on a single type of property or based in one geographical area tended to have management teams that could draw better returns from their real estate than those that were highly diversified, he said. Investment analyst Kelly Hook comments.