RENTS AND SALES.

Auckland Star, Volume LXX, Issue 189, 12 August 1939, Page 11

RENTS AND SALES.

HOUSES IN AUCKLAND.

AGENTS' EXPERIENCES.

DEPOSITS AND MORTGAGES.

While the number of houses and flats 1 under construction in Auckland city and suburbs has been more than doubled in : the past two yearn, and the Government is actually letting houses, house hunting continues to present a crop of problems, i Agents in the city are daily besieger! by, callers and telephone inquiries, appeals are made to grocers and butchers for "inside knowledge" about houses or other accommodation likely to become vacant, and information is sought among friends and relatives with the same aim in view. "Wo cannot see any improvement in the position, although 1400 State houses have been lot in and around Auckland in the past 20 months," said a leading estate agent this morning. "When another five hundred houses arc lot the position mny be easier, but it is too early yet to form an estimate." "It is Extraordinary." To indicate the ncuteness of the shortage, one agent interviewed stated that he had had Only two houses to letj this year, and people wanting houses! were calling and ringing him up every day. "It, is extraordinary," he said, "that after so many State houses have been completed and occupied there are still no private houses for us to offer to tenants. It seems that houses to let don't get as far as us these days. The owners can let them without our assistance." I

There was also a keen demand for houses to buy, it was learned, but a difficulty was that the majority of those inquiring could not pay sufficient on deposit. Tt whs also difficult to find alternative accommodation for tenants iu occupation. The claee of house most,

in demand was below £900 in price,' often rented at 25/ or more a week. Most intending buyers could afford to put down only £100 to £150 on deposit, whereas the owners usually asked from £250 to £400.

Sellers' Concessions. "We cannot get houses to offer at low deposits," said an agent. "If we could there would be plenty of sales; that is, provided the buyers could enter in. The prices are hardening, but generally the values- asked by the owners are so high that they have to be reduced to enable sales to be completed."

I Reflecting the housing shortage, flat* arc also stated to Iks in exceptionally keen demand for letting, a position [which has existed for a considerable time past. New flats are being built on an extensive scale, some blocks being as far as three or four miles from the heart of the city. Furnished flats, which arc usually regarded as non-permanent accommodation, are, however, less difficult to obtain.

An aspect of the problem, which is a recent development, is a tightening up in the mortgage market, and a hardening of lendinjr rates around 5 per cent, combined with a demand for an ample margin of security.