SA listed property stocks bounce back despite unsteady global markets

THERE'S a silver lining for South African real estate investors, despite the turbulence in the global markets.

- ASHLEY LECHMAN

This was according to Ian Anderson, head of listed property and portfolio manager at Merchant West Investments and the compiler of the SA REIT Association's monthly Chart Book, the local REIT sector is in significantly better shape today than it was five years ago.

Anderson draws a stark contrast between the present and the sharp downturn the sector experienced during the Covid-19 pandemic.

“The current turmoil in global financial markets comes almost exactly five years after the last major drawdown for South Africa's listed property sector, when the South African economy was shuttered at the start of the pandemic. Between March 2017 and March 2020, South African REITs, on average, lost more than 70% of their value - in the years since, the sector has clawed back nearly 68% in value (excluding dividends), though it remains more than 50% below March 2017 levels,” Anderson said.

With fresh waves of political and economic uncertainty spreading across global markets, investors are questioning whether history might repeat itself.