RURAL LAND PRICES

Bay of Plenty Beacon, Volume 4, Issue 164, 6 October 1941, Page 4

RURAL LAND PRICES

THE skyrocketing of the values of rural lands in England recalls a similar experience in New Zealand during and after the last war. Fortunately this feature is absent from the Dominion's economy to-day. In the year 1938 (March 31), 849,000 acres were subjected to transfer of title. The consideration money was £9,539,000. This averages out at £11 4s 9d per acre. In 1941 (March 31), 918,000 acres were subjected to transfer of title, the consideration money being £10,278,000, which averages at just under £11 4s per acre, so the indications are that the price of rural land has remained stable between 1931 anrj 1941 (March 31). This average out of transactions includes not only sales actually made, but also transfers brought about by the process of distributing deceased estates. Conditions in this respect may be expected to remain reasonably constant from year to year. On the other hand the character of the land subject to sale may change. For instance, if wool remained at a high level and meat was also being disposed of satisfactorily, while: butter and cheese were at a discount, the tendency would be for more sales to be mad,e in low-price high country land, which would bring down the general average price. If reverse conditions ruled, the demand would be for high-priced dairying lands which would put up the general average price per acre. That the price of land should have remained stable, while the number of transfers in 1941 should have increased over 1938 by 500, while the acreage affected has increased by 69,000 acres, reveals that farming in New Zealand in wartime is an attractive occupation. This conclusion is fortified when, referenae is made to the trading banks advances to farmers, these having been reduced from £18,684,000 in June 1939, to £17,198,000 in June, 1941, a reduction in their bank liabilities of £1,486,000. It is clear that farming operations to-day are satisfactory when viewed from the financial angle, but if an orgy of land gambling breaks out it will result in the capital of the industry being written up and the way will be paved for another debacle like that which resulted in a demand for the depreciation of the currency and the 'adjustment" of mortgages, which was a wholesale tearing up of bonds, concerning which certain rural representatives have recently developed exceedingly sensitive consciences.