Property Market Brisk In Cities; Lags In Country

Press, Volume CII, Issue 30062, 21 February 1963, Page 8

Property Market Brisk In Cities; Lags In Country

(New Zealand Press Association)

WELLINGTON, Feb. 20.

Although there was no doubt the 3 per cent. State loans and family benefit subsidies had materially aided the housing situation, in some districts, such as Christchurch, there had been a temporary tendency to overbuild, a spokesman for the Institute of Valuers (Mr R. H. Rolle) said today.

The property market appeared brisk in major cities but dull in many provincial towns and country areas, Mr Rolle said.

A great deal of money was being invested today in urban real estate.

“Many investors are . attracted by high returns, which, in toe smaller fields of real estate investment, can reach, or better, 10 per cent.

“Most of the money, however, is being invested at lower returns apparently

with the object in off-setting probable inflationary trends. In the Auckland and Wellington areas, particularly the latter, the development of own-your-own flats had- become big business. Building costs did not appear to be easing in spite of greater .competition for worthwhile jobs, and over the last 12 months costs had risen slightly.

“Farm properties are not selling very well and show a tendency to fall below peak prices,” said Mr Rolle.

“This situation is being brought about by the apparent reluctance of lenders of mortgage money to mortgage farms on a liberal basis. This appears to be a direct outcome of the uncertain economic conditions relating to primary produce.

“On the other hand mortgage money for urban property seems a shade easier,”