The listed property sector, which had regained almost $18bn of its market value in the past 12 months, is expected to gain further ground this year.

The benchmark S&P/ASX A-REITs 200 index, which dropped to a historic low of 546.9 points in March, is expected to reach 925 points by June, according to Goldman Sachs JBWere.

Although the index closed yesterday at 908.1 points, the sector's dramatic recovery appeared to have run out of steam, giving back some of the gains in the last quarter and its performance is expected to fall behind the general equities market.

According to the GSJBW team, the sector is expected to deliver total returns of 10.8% by the end of the year, and an estimated total return is 26.3% for A-REITs by the end of next year, compared with 35.3% from broader equities.

JPMorgan property research forecast a total return of 5.5% for this year.

The Australian