Goodman Group Shares Jump More Than 3% as Property Stocks Lead ASX on Hopes US Rate Hikes Are Nearly Over

SYDNEY — Shares of Goodman Group, Australia's largest listed property company, rose more than 3% on Wednesday afternoon, bucking a broader decline on the Australian share market as property stocks benefited from hopes that U.S. interest rate increases may be nearing an end.

Goodman shares were up 88 Australian cents, or 3.32%, at 27.38 Australian dollars in afternoon trading, after earlier reaching as high as 27.50 dollars. The stock touched a low of 26.43 dollars during the session. Trading volume topped 2.39 million shares.

The gain lifted the company's market value to about 56 billion Australian dollars.

Property sector outperforms

Goodman's rise came as real estate investment trusts were the best-performing sector on the Australian market. The property sector gained 0.6% by midday, following comments from a U.S. Federal Reserve official who suggested the central bank may need only one more interest rate increase in its current cycle.

Property stocks are particularly sensitive to interest rates. Higher rates raise borrowing costs for property owners and developers and can reduce the value of real estate assets, while expectations that rate increases are ending typically support the sector.

The gains came against a weak backdrop for the broader market. The S&P/ASX 200 was down 59.1 points, or 0.67%, at 8,724.8 as of 3:15 p.m. Sydney time, dragged lower by banks after a sell-off in U.S. bank shares overnight.

Recovering ground

Wednesday's rise extends a volatile stretch for Goodman shares. The stock closed at 26.50 dollars on Tuesday and fell 1.91% on Monday to 26.64 dollars. Last Friday, it rose 3.19% to 27.16 dollars.

Despite the recent gains, the stock remains well below where it traded a year ago. Goodman shares are down about 16.7% over the past 12 months, and the company's market value has fallen by nearly 19% over that period.

Analysts remain broadly positive on the stock. The consensus price target among analysts covering Goodman is 35.05 dollars, well above its current price.

Logistics and data centers

Goodman, founded in 1989 by Gregory Goodman, owns, develops and manages industrial real estate, including warehouses, large-scale logistics facilities, business parks and data centers. Its operations span Australia, New Zealand, Asia, Europe, the United Kingdom, North America and Brazil.

The company has increasingly focused on data centers in recent years as demand for computing capacity, driven partly by artificial intelligence, has surged. That shift has made Goodman one of the Australian market's most closely watched plays on digital infrastructure.

Goodman reported net income of about 2.78 billion Australian dollars for the financial year ended June 30, 2026, and total assets of about 89 billion dollars.

Gregory Goodman remains group chief executive.

Rate sensitivity

Goodman's share price has been affected by the outlook for interest rates both in Australia and overseas.

The Reserve Bank of Australia has not ruled out further increases in the cash rate. Minutes from its September meeting, released Tuesday, said the board would do what it considered necessary to bring inflation down, including raising rates further if required, as developments in the Middle East weigh on the inflation outlook.

Commonwealth Bank of Australia CEO Matt Comyn said at the bank's annual meeting Wednesday that growth is slowing and inflation remains too high, and that it will take time for higher rates to bring inflation back to the target range.

For property companies, any sign that global rate increases are nearing an end can offer relief, while further increases pose a risk to valuations and development activity.

Investors will be watching U.S. inflation data due later Wednesday, which could influence expectations for Federal Reserve policy and, in turn, global bond yields.

Goodman's shares will also remain sensitive to developments in the data center market and to the company's progress on its development pipeline. The company is scheduled to hold its annual shareholders meeting later this year.