Directly held commercial property outperformed equities and bonds in South Africa last year.
The SA Property Owners Association’s property index, International Property Databank (IPD), released yesterday, showed property unit trust listed property funds achieved a return of 12.2 percent and directly held property posted a 10.4 percent return last year, compared with 2.6 percent for the equity market and 10.1 percent for bonds.
South Africa’s overall commercial real estate market achieved modest growth last year, with a 10.4 percent return.
Uncertainty in global markets, weak local demand and slowing consumer confidence resulted in muted capital growth of only 1.4 percent while income returns were steady at 8.9 percent.