MORE PROPERTY SALES

Press, Volume LXXIV, Issue 22389, 30 April 1938, Page 16

MORE PROPERTY SALES

CONFIDENT TONE IN

DOMINION

VALUES BELOW THOSE OF

BOOM PERIOD

HOMES MARKET AFFECTED

BY LEGISLATION

Although the condition in no sense approaches that of a boom period, the real estate market throughout New Zealand is steadily improving and, with the general improvement in overseas conditions, more sales are being made of city, urban, and rural property. This report was made by Mr Owen Baker, of Christchurch, the Dominion president of the Real Estate Institute, to "The Press." Mr Baker has just concluded a comprehensive trip, on which he visited nearly every branch of the institute from Invercargill to Auckland. He found everywhere a quiet tone of confidence in the future of the real estate market.

Few big sales were being made in the cities, said Mr Baker. The value of the city properties however, were fairly stable, coincidental with the growth of the cities and the recovery from the depression, but suburban properties were being sold at values lower than those ruiing in the prosperous years of 1928-Z9. in Taranaki and the Waikato a volume of sales of dairy farms and small farms was being recorded at prices below those ruling in the boom period. Where farm properties were being placed on- the market at a price 8 which represented a reasonable payable value sales were readily made.

Tenants and Houses

Trusted, widows and people in straitened circumstances were in many cases finding it very difficult to realise on their property because of Jegisla tion now operating, under which the owner was required to find alternative accommodation for the tenant "Although the legislation may have been necessary in, a few instances, the position could -be better ap preached if magistrates were given wider powers than they now have to deal expeditiously with applications lor possession," said Mr Bakei. In many cases at present, tenants raise frivolous objections *o the premises up an-alternative to them. Tne Government's housing scheme was considered by agents throughout the Dominion to be quite good n that the houses were very well bum. But the amount of building being done by the Government went a small way only towards relieving the acute shortage of houses, for those who might build for investment feared that /the laws regarding tenancy and mortgages might be altered. "If the present restrictions were lifted the builders would. operate more freely." Mr Baker said. The P"vate home building now going on is limited almost entirely to the man bunding for his own occupation and not as a means of investment.

Money For Mortgages Where the margin was good on the reduced values, plenty of money lor mortgage purposes was available at from 41 per cent, for city property, up to 5 per cent, on suburban properties, and 4J per cent on farm lands. An enormous amount of State Advances Corporation money was being lent m the North Island. By making money available at a low rate, the corporation was doing very good work ana was assisting to ease the housing probThe towns in the North Island which impressed Mr Baker with their evident progress and expansion were Hawera, Te Awamutu. and Hamilton. They were very solid and alive for farming towns. At Hamilton, Mr Baker addressed, as he did in other towns, a meeting of real estate agents, some of whom had motored 60 miles to attend. The interest in the institute was very keen throughout New Zealand, he said.