South african property set for consolidation

The South African property market is all set for consolidation following a flood of new listings on the market in the last three years, reports BDLive.

The pattern is not without precedent: there was a rush of new listings in 2003 and 2004, which led to a cooling-off period when larger listed property stocks acquired their smaller counterparts. Now, that is set to happen again, Investec analyst Peter Clark predicted.

“We are expecting some consolidations to happen in the sector, particularly in the smaller names where capital is scarce, these funds will have to resort to corporate action in order to grow.”