According to Jay Padayatchi, director at Meago Asset Managers, property investors are likely to be benefitted as the best returns are expected to come from Johannesburg Stock Exchange i.e. JSE’s offshore listed property than the local property which gives strength to the lower value of RAND.
Since mid may constant fluctuations were seen in the property prices. This is prompting investors to think over again regarding their investment in the market. There was a remarkable increase of 35% in 2012, and this growth was also expected to continue in 2013.
But this golden period was only for a while as it ended on 20th May. The weakened RAND and the increasing number of large property equity raisings finally came into their role. As a result the index fell by around 20% in the five weeks till June 20. The property stocks are passing from constant ups and downs. On Tuesday the index was found to be recovering its losses by 7%. And therefore investors are benefitted with some more profit by 7%.
Few investors like Sanlam are now reconsidering on whether to invest their money in property stocks or not. According to Rafiq Taylor, a portfolio manager at Sanlam Multi Manager International, the property index since the last two months is raising like a warning bell for the investors.
From starting of the year to July 19, the differential amount between the best and worst performing property stock is found nearly around 60%, Hospitality Properties are at 60.7% when compared with Annuity Properties at 1.7%.
SA investors who are interested in their growth and exposure to foreign currency income have sighted Nepi (New Europe Property Investments) as their main target to invest which allows management for assured property deals. Nepi is currently moving further at just over 5% and earns its income in euros.
