Australia property firms see pick-up, shares rise
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SYDNEY, (Reuters) - Three Australian property firms gave cautiously optimistic outlooks for the local real estate market on Thursday, sending shares in the sector higher.
Australian property firms have been among the hardest hit by a slowdown in the domestic economy, forcing them to take an axe to property values, especially commercial real estate where some portfolios have been written down by more than 20 percent.
Mid-tier stocks GPT Group (GPT.AX) and FKP Property Group (FKP.AX) reported heavy writedowns and combined losses of $1.24 billion, but both said conditions might be improving.
GPT shares were up 2.6 percent by 0150 GMT, while FKP shares stood over 6 percent higher. The property sector index .AXPJ was up 1.5 percent in a weaker overall market.
"In Australia, there is cautious optimism with the unemployment rates forecasting to improve going forward," Chief Executive Michael Cameron said in a statement.
