The listed property sector in New Zealand gained 5.1% in the three months ended March, in line with the 5.2% gain in the NZX50.
However, in the past 12 months, listed property grew nearly 30% in value, significantly outperforming the NZX50 which was up 15.2%.
Forsyth Barr broker Andrew Rooney said improving property fundamentals, New Zealand's economic growth and continued low interest rates had been favourable for listed property vehicles (LPVs).
Also, development activity and investor interest remained high for the broader property sector.
In the year ended March, the best performing LPVs had been Vital Healthcare (up 45.4%), DNZ Property Fund (up 35.6%) and Argosy Property (34.5%).
Vital Healthcare was also the leading quarterly LPV with a gain of 11%.
''Over this period there has been a chase for yield and the higher dividend-yielding LPVs have subsequently outperformed,'' Mr Rooney said.
Other LPV annual returns were: Goodman Property (up 33.1%), Augusta (up 32%), Property for Industry (up 30.9%), Precinct Properties (up 25.4%), Kiwi Income Property (up 22.9%), National Property Trust (up 17.8% and CDL Investments (up 14.8%).
Mr Rooney expected further revaluations from the listed property vehicles this month.
Kiwi Income announced a revaluation gain of 2.6% for the 2015 financial year and the other LPVs were expected to announce ''solid'' gains in the next few weeks.
''March was a big month for property news flows with major announcements.''
A strengthening property market, plus an attractive dividend, remained the attractions for a fully priced sector, he said.
The defensive quality of the cash flows relative to the broader equity market had appeal while the underlying property market fundamentals continued to strengthen. Investment and development activity remained robust.
''We expect asset values and, hopefully, market rents to continue to strengthen while risks factors are the record premium rating relative to net tangible assets and the low level of earnings growth.''
