Interest's bite eats into AMP

Thursday 5 August 2004

Rising interest rates are beginning to hammer the listed property sector with the head of the second-largest real estate conglomerate predicting wholesale writedowns.

By The Landlord

Last year, AMP NZ Office Trust revalued its portfolio up $21.6 million but yesterday said it had revalued buildings up only $11.75 million, which executive manager Rob Lang attributed to increasing caution due to interest rate rises.

But after taking into account other expenses such as property acquisition and disposal costs, the trust devalued its portfolio by $268,000.

"Interest rates are clearly having a dampening effect on property prices because they are a key component of the valuation process," Lang said, announcing a net surplus after tax and before revaluations of $34.3 million, only marginally up on last year's $34.2 million.


Read More - Opens in a new window
Commenting is closed

Property News

Return to market form

There’s been a rallying of the market with the latest REINZ data showing both sales volumes and median house prices noticeably up with the onset of Spring.

House Prices

No stopping Capital price rises

There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.

Mortgages

LVR limits slow down investors

LVR speed limits continue to have a "strong effect" on investors, according to CoreLogic, after the latest Reserve Bank data showed a drop in investor borrowing.

Site by PHP Developer