House-Value Disparities

Press, Volume CIX, Issue 32037, 11 July 1969, Page 20

House-Value Disparities

The great differences in New Zealand cities in the cost of an average house are a matter of public concern, says a leading article in the latest issue of the “New Zealand Valuer,” published by the New Zealand Institute of Valuers. “Why are ‘standard’ house values in Wellington, at $13,000 to $14,000, from 37 per cent to 48 per cent higher than Napier, Hamilton and Christchurch at $9500?” it says. “How likely is it that, if indicated trends continue, Auckland and Wellington house values would in a few years exceed these others by 50 per cent, or $5OOO, for the same ‘standard?’

“The public’s concern about these differences should cause valuers, the Government and employers to be vitally interested because it is these dif-

ferences that give rise to a major contributing factor in relative real costs of living, In a country where economic development and progress depend on the ready mobility of available labour, such dis-

parities have been left too long without an adequate reason or answer.” The policies needed to mitigate the disparities in housing costs, will not be easily formulated, the journal says. In theory, substantial Government subsidies to provide low cost housing associated with urban renewal schemes in the dearer centres should both increase the supply of flats and houses and in time reduce the demand for housing. Differing State mortgage maximums for various centres may only tend to reinforce the difficulties. “Both of these are pricereducing determinants, but to date experience shows that too little has come too late and the effects on the market are not yet felt “If there is any plea to be made at the moment it is for urgent research into why such disparities exist and their relationship to the mobility of labour, urban sprawl, and city development, together with some projections into the future. Also, the effects of economic control or stimulus in the property market need evaluating,” the journal says. “The public have a right to demand an explanation and this we should be able to give, to make them not only better informed but less bewildered.”