South african real estate outperforms other assets

South African real estate outperformed other assets in 2015, according to the SA Reit Association.

Real estate investment trusts (REITs) returned 7.99 per cent to investors in 2015, ahead of cash (6.46 per cent), equities (5.13 per cent) and fixed income bonds (-3.93 per cent).

"Despite a tough operating environment and the brutal turmoil that hit local markets in December, the SA REIT sector continued its excellent track record of outperformance for investors in 2015," comments SA REIT Association Chairman, Laurence Rapp.

While being the best performing asset class of 2015, listed property's returns were somewhat lower than in recent years after it took a nasty knock in December, with other sectors, as capital markets responded to what has been coined Nenegate. As the market was rocked by the news, listed property dropped around 10 per cent in two days. It later recovered to some extent. Despite these gains, in December listed property still lost 6.12 per cent. Before then, however, listed property wasn't only leading other asset classes but outperforming market expectations.

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