Shares of two of Australia's largest property developers surged after stronger full-year earnings showed resilience in the face of a housing market downturn. The gains highlight investor confidence that the sector can weather a slowdown in property prices.

The developers reported earnings that exceeded expectations, driven by solid demand for new homes and effective cost management. Analysts noted that the results suggest the housing slump may be less severe than feared, with underlying demand remaining robust.

Market observers said the earnings beat could signal a turning point for the sector, which has been pressured by rising interest rates and tighter lending standards. The rally in shares reflects optimism that the worst of the downturn may be over.