The sun is setting on yet another tough year for property. Always sensitive to interest rate expectations, the sector initially benefited from expectations of looser monetary policy. However, optimism dissipated in the wake of the Budget and property stocks took another tumble.
The flipside of this is that in some cases, it looks as though markets have overreacted. Valuations have for the most part adjusted to the new interest rate environment and many management teams are busily trying to extract more cash from their portfolios. This means that some stocks are now looking well priced again.
As is always the case, it is impossible to say for sure how things will pan out. However, given interest rates are unlikely to go up again, now is the time for investors to settle into the new status quo. With that in mind, here are five predictions for the next 12 months.