EASING IN HOUSE SALES

Press, Volume CVII, Issue 31439, 4 August 1967, Page 1

EASING IN HOUSE SALES

(New Zealand Press Association: WELLINGTON, August 3. Sales of houses in Wellington had fallen 10 per cent in the last year, a spokesman for the Institute of Valuers said today.

The drop was possibly higher in some other centres, and reflected reduced spending because of the shortage of finance for property sales. Building costs had also fallen in all centres except Wellington, said the spokesman.

For a plain one-storey bungalow of 1000 sq. ft on a level section the cost a square foot at June this year was: Wellington $7.68, Auckland $7.17, Dunedin $6.48, New Plymouth $6.40, Masterton $6.38, Hamilton $6.28, Invercargill $6.26, Christchurch

$6.06, Nelson, Napier and Hastings $6, Palmerston North $5.98, Ashburton $5.90, Wanganui $5.82. The demand for building sections both in Wellington and elsewhere had also slackened, the spokesman said. Builders were facing increasing competition for work. Buyers for many types of property were hard to find, and property not in the first flight of demand was hard to sell. Money Left In Land agents were having to sell properties and not simply offer them to enthusiastic buyers. Many were having to assist buyers with finance by leaving money in the property. Government valuations, generally below market value, were now close to market value in many areas. Warmer Months The president of the Wellington branch of the Real Estate Institute (Mr F. J. Webb) said the recession in the property market, particularly in the number of sales, was possibly greater in the Hutt Valley than in Wellington. Only those who had to move were putting their homes on the market. People wishing to move seldom did so in winter. Sales could be expected to improve in the warmer

months, but sales this winter had been even quieter than in previous winters. Prospective buyers were showing little interest in “spec” houses put up by builders in the' hope of attracting buyers. Builders in the Wellington area had had to bid high to get skilled workmen for a considerable time. This as much as anything else had

kept Wellington's building costs above those of the rest of the country, he said. The director of the Building Research Bureau (Mr D. G. Stevens) said a national survey by regions earlier this year indicated that Wellington had fallen behind the required rate of home building and replacement to a greater degree than other main centres.

It was likely this trend would be even more pronounced by now, he said. A spokesman for the Builders’ Federation said that in spite of the lifting of restrictions on building projects, to get the building industry going, again was likely to be a much slower process than had been caused by the clampdown.