Due to the relatively low levels of debt and foreign investment in the South African listed property sector the direct impact of the global credit crisis has been limited. The average debt levels of less than 30% are significantly lower than its global peers. Strong fundamentals for rental growth in the office and industrial sectors have continued to support strong income growth of 14% over the past year. While the outlook for the retail property sector will be impacted negatively by the consumer slowdown, the outlook for rental growth in the office and industrial sectors remain favourable due to the supply constraints and increasing land and replacement cost. Listed property yields of 7% are expensive relative to the current cash and bond yields but the outlook for strong income growth is expected to be maintained.