** Citi remains cautious on the Australian office space sector

** Sector shows stability with improving vacancies, but high incentives and capex challenge net cash flow generation - Citi

** Brokerage says a catalyst is needed to shift the outlook towards higher growth to attract a broader range of investors

** Expects increased liquidity from fund redemptions to align with rising investor demand amid falling interest rates

** Says property manager GPT Group GPT.AX is its value pick

** YTD, GPT is up 13.3%, outperforming Australian real estate subindex's .AXRE gains of 5.6%

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))