Update: SA Listed Property Index

A theme throughout this week has been the property shares showing consistent strength, hitting intraday highs across the board - both local and offshore-facing. Currently there appears to be a consensus that the sector may have room for further recovery, with VKE's results yesterday shedding some light into the sector. As highlighted in our 08-February client report, the monthly chart for the SA Listed Property Index was setting up in a similar manner to the July to October 2009 period where the multi-month pivot acted as a key level for a further advance. The index is around roughly 14% high since, but is yet to recovery it's pre-covid levels, which a number related local facing sectors have done. As market participants warm up to the sector, we could see the recent bullish trend gradually continue.

In addition to Redefine and Hammerson Plc that have start to follow our envisioned price path, both Liberty Two Degrees (owner of Sandton City) and Sirius Real Estate (German Industrial exposure) are also looking to move out of their consolidation ranges. I'm monitoring these.