Business · South Africa
Why SA’s Big JSE Property Stocks Are Trading Above Their Value
Moneyweb · 2026/02/20
Summary
South Africa's listed property sector, especially the big Johannesburg Stock Exchange (JSE) property stocks, has seen a strong recovery in recent years. Many of these real estate investment trusts (Reits) are trading at prices above their net asset values, which is known as trading at a premium. This means investors are willing to pay more for their shares than the value of the underlying properties owned by these companies. The recovery follows challenges faced by the property market during the COVID-19 pandemic. Factors such as improved business conditions, better rental incomes, and the reopening of the economy have contributed to this positive change. However, not all investors agree on the sustainability of these premium prices. Some caution that property stocks must continue delivering good results to justify their higher valuations. For everyday South Africans interested in investing or understanding the property market, these trends show cautious optimism but also a need for careful analysis before investing.
OnABudget takeaway: For consumers and small investors, the rise in JSE property stocks reflects recovering confidence in the property sector, but it’s important to watch whether these high prices hold or could drop if growth slows. Small business owners linked to property markets might find new opportunities as leasing and rentals improve.