Anzo sees upside to property squeeze

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.

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