Anzo sees upside to property squeeze

Sunday 17 October 2004

A squeeze on premium office space should help offset rising interest rates and see healthy investor returns during the next few years, Robert Lang, head of AMP NZ Office Trust, says.

By The Landlord

Speaking at yesterday's annual meeting in Wellington, Mr Lang said despite clear indications that rising interest rates were beginning to slow the residential market, Anzo had fixed the rates on 86 per cent of its debt for five years to reduce exposure to increases.

In Wellington, supply and demand was at a point that businesses looking to upgrade would have to pay more – which would over-ride interest rate rises at least in the short term, he said.

A slight resurgence in the language school market, which occupied lower grade buildings, was also helping to push up demand for premium office space.


Mr Lang said rents of top grade buildings had gone up between 30 and 50 per cent in the past three years. In future, growth was expected to be a more modest 5 per cent per year.

Read More - Opens in a new window
Commenting is closed

Property News

ComCom warning for property trader

A property trader, who has attracted unfavourable media attention in recent years, has received a formal warning from the Commerce Commission.

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 loosening likely - ANZ

LVR restrictions were never meant to be a permanent feature of New Zealand’s housing market and ANZ economists argue that some further relaxing of them could soon be on the cards.

Site by PHP Developer