VALUATIONS OF PROPERTY

Press, Volume LXXXII, Issue 24982, 17 September 1946, Page 8

VALUATIONS OF PROPERTY

“ARBITRARY” ATTITUDE ALLEGED / REAL ESTATE INSTITUTE «PERTURBED ” “We are perturbed by the many seemingly arbitrary values submitted by the local valuation office in its valuations regarding sales for approval by the Land Sales Committee,” stated Mr A. R. Sherris, president of the Real Estate Institute of New Zealand (Canterbury and Westland branch), at the meeting of the branch last evening. “This .applies particularly to the values of sections, and it is the opinion of this institute, that some modification of the attitude taken is necessary to encourage owners of suitable blocks of land to subdivide and thus relieve the acute shortage of building sections.” Mr Sherris said.

The demand for homes was still great, and the supply “lagged behind lamentably,” Mr Sherris continued. “There is an unfortunate shortage of essential materials; and a staggering increase in costs has occurred since 1942, the stabilisation date for property values. The disparity between 1942 values (the basis on which the Land Sales Court fixes its prices) and pres-ent-day costs is so wide that it means that there are practically two separate markets for property, one for up to 1942 and the other for new construction. “There is a distinct penalty on persons purchasing new houses, which must result in a loss when all restrictions are lifted. The removal of the sales tax must also mean a loss to those who have recently built or bought a new home.". The inquiry for farm properties had been keen throughout the year, Mr Sherris continued, there being a particular demand for good quality land. The mixed farm of 200 acres was the type being sought largely for the settlement of returned servicemen, and vendors were reluctant to sell while the present conditions ruled. “The settlement of returned men on farm lands is becoming a problem, and the demand is very much greater than the supply. We have comparatively few large properties that can now be subdivided economically, and it appears that it will be a long process in getting all servicemen-farmers settled on the land.”