Property returns remain positive
SA PROPERTY returns stayed positive in 2009, the SA Property Owners Association (Sapoa) and the Investment Property Databank (IPD) said yesterday.
According to the Sapoa/IPD SA Property Index, the commercial real estate market delivered a total return of 8.7% in 2009.
Over three years, direct property outperformed all other major asset classes.
South Africas high domestic annual inflation, relative to
most mature global investment markets, at 6.3%, is such that the nominal
total return for last year is substantially eroded to 2.3%.
According to the Sapoa/IPD SA Property Index, SA produced the highest nominal return of the 11 countries for which IPD had released results to date.
Virtually all commercial real estate markets measured by IPD fell into negative territory over the past two years, including the USA, Canada, Australia, New Zealand and Japan, Stan Garrun, Managing Director of IPD South Africa, said.
The UK market, which was the first to decline, appeared to be in recovery after a 3.5% return was delivered last year a considerable turnaround from 22.1% in 2008. Sapa
Article from: www.dispatch.co.za