‘Confidence crisis’ grips wary, weary listed property punters
Battered investors have decided to take their money elsewhere due to a weaker earnings growth outlook
The fact that the JSE’s property sector has raised no more than R1.8bn in new capital in the year to date is a fresh reminder of how appetite for real estate stocks has shrunk.
That’s way less than the R14bn that flowed to the sector in 2018 and only a fraction of the average R40bn-R50bn a year that property punters were prepared to fork out to support book builds, new listings and M&A activity in the preceding four years.
The lack of deal making among the JSE’s 60-odd real estate counters follows last year’s overall 30% drop in share prices. The fall was led by a large sell-down in the Resilient (https://www.sharenet.co.za/v3/quickshare.php?scode=RES) stable of companies following allegations of insider-related trading and share manipulation, most of which has since been refuted...