PROPERTY IN DEMAND.

Press, Volume LXVIII, Issue 20610, 28 July 1932, Page 8

PROPERTY IN DEMAND.

MARKET IMPROVES. ENQUIRIES FOR SMALL FARM LANDS. CONFIDENCE AMONG BUYERS AND INVESTORS. During tho past few weeks there has been a definito and encouraging improvement in tho demand for property of all classes, notably for fa«n lands of 10 acres upwards. B.yfli buyers and mortgagees have bociimo more confident of the future, and there is a general belief that prices of property, together with prices for primary produce, have now touched bottom. The factors which have so favourably influenced tho rural market particularly may be summarised in theso terms: (1) Rising prices for wool and butter. (2) Hope that tho Imperial Economic Conference at Ottawa will reach an agreement giving greater security to the New Zealand primary producer. Mortgage Money Available. (3) A loosening of mortgage money which was held up while the legislation of the last session was being prepared and may now be put out without danger of loss either through the National Expenditure Adjustment Act or through the Mortgagors Relief Act and its amendments. (Neither of these Acta applies to contracts entered into after April Ist, 1932.) (4) Tho low price of stoek. It is anticipated that stock prices will certainly harden during the spring. (5) Tho loss of employment by men who, having a few hundred pounds in the bank, are not eligible for relief work and invest their savings in small farms as offering the only avenue of profitable work. (6) Tho relative stability of 'costs following recent legislation. (7) A general realisation that land values havo now reached such a low level that mixed farms can be made to pay even at jjiosent prices.

Unwilling to Sell. During the last month the growth of confidence has been so marked that land agents report some difficulty in securing farm properties for sale, even when good offers are made. The, farmers in possession feel that their, condition could hardly become much worse, that it must, in fact, soon begin to improve, and they are making every effort to retain their holdings. On this account there are few leaseholds available in spite of many and promising enquiries. The principal of one firm dealing largely in farm properties, who was interviewed by Tub Press yesterday reported a big demand for holdings of from 10 to 20 acres suitable for "Bmall homo farms." In the next class (50 to 100 acres, for dairying and mixed farming) the demand was quite as good, but tho supply was small. There were enquiries also' for properties of from 175 to 250 acres (wheat and sheep) and for those of from 500 to 600 acres (S®®* oral mixed farming). As for larger holdings—those carrying 1200 ewes or more—buyers were still hard to deal with. He stated the opinion that until buyers for large farms came on the market the general improvement would be retarded. The selling values of these holdings ultimately governed the market. In other words, until prices for primary produce advanced and the farmer's work was made profitable, there could not be a full recovery. Demand in City and Suburbs. While the demand for house and City property has not been so marked, it is to-day definitely an increasing demand. Town values might be expected to take longer to recover, since they have both boen affected by a fall iq rentals and by a heavy reduction in the cost of building. Further, house property cannot bo made to yield the profits or to provide the useful work that rural property can; it is not in demand among people who have suddenly had to find a new way of making a living. At the same time, the demand for houses, rented and for sale, is steadily increasing. Land agents actually confess difficulty in finding a sufficient number of bettor-class homes to provide for all enquiries. In the City several shops and suites of offices have lately been lot, the shops in several cases to firms anxious to extend their businesses and tlie offic© suites to firms opening branches in Christchurch. Here, as in the rural property market, there is evidence of revival. "Definite Upward Movement." "There has been a definite upward movement," said Mr Owen Baker, president of the Canterbury-Weatland branch of the Real Estate Institute of New Zealand. "Some good sales have gone through lately in Christchurch, and enquiries are continuing. No big City blocks are being sold, of course, but the number of suburban property sales is considerable. While building firms can hardly bo said to be operating extensively, they tire enquiring about suburban sections. All the agents to whom I have spoken lately agree that there is a brighter demand from the ordinary class of buyer for domestic properties." Mr Baker enumerated several office suites and shops which his firm had recently let, and he did not think that their experience was unusual. He agreed that there had been some loosenin® of mortgage money, although good secure ities and good margins were still required. As for letting, there were not enough good houses available to meet tho demand.