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

Major industrial development powers on

It’s full steam ahead for the Stevenson Group’s $800 million, 361-hectare industrial and residential development in South Auckland – despite the uncertainties of the post-Covid-19 era.

House Prices

House price drops are short-lived - Alexander

Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.

Mortgages

Mortgage lending slumps to record low in April

Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.

Site by PHP Developer