Commercial and residential property developer Australand Property Group has downgraded its profit outlook amid a deteriorating property market and rising financing costs.

Managing director Bob Johnston said today the operating profit would be at the bottom end of a forecast given in February.

'Overall we expect the 2009 group operating profit before re-evaluations and any significant one-off items to be down by approximately 30% on the 2008 operating profit result,' he said in the annual report, released today.

'This is at the lower end of the range previously advised and reflects further deterioration in market conditions and an increase in financing costs. We do expect asset values to continue to decline.'

The Australian