The country’s largest office property funds have lost almost 27 per cent in value since the start of the downturn, but the rate of decline is slowing, sparking hopes the bottom of the cycle is near.

Over the September quarter, office funds recorded further writedowns in capital value to the tune of 3 per cent, taking the total loss in the current downturn to 26.9 per cent, according to research and data provider MSCI.