Shortage of flats makes investment popular

Press, Volume CXII, Issue 32959, 4 July 1972, Page 16

Shortage of flats makes investment popular

The demand for accommodation in Christchurch had increased rentals substantially, making investment in flats and houses for letting quite popular, said the president of the Canterbury-Westland branch of the Real Estate Institute (Mr N. H. McCrostie) in his annual report.

Mr McCrostie said, however, that more effort should be made by local authorities and the Government to redevelop inner-city areas and make more use of existing services.

“The cost of sections could possibly be reduced if more land was made available. Here, the public is at the mercy of the town planners.”

Building costs continued to rise, putting the prospect of a new home out of reach of many. The $2OOO increase recently announced by the State Advances Corporation would socr be absorbed by increased building costs, he said.

"The cost of sections could possibly be reduced if more land was made available. Here, the public is at the mercy of the town planneis. On the other hand, I feel that more effort should be made by local authoijties and the Government to redevelop inner areas and make more use of existing services before extending these costly wodks.” Engures this year showed an. average increase of just under $2OOO per sale. Shortage of good properties bad raised prices.

“It is no news today to hear that properties have sold for double the Government valuation. Ownership flats have also been in demand, and in many cases have been selling at prices well in excess of their true value,” Mr McCrostie said. In rural areas, economic sheep units had not been

coming on to the market in numbers, and most properties being offered now had been on the books for some time.

“There is a strong demand for good economic units, especially in the higher rainfall areas, but buyers are

very conscious of earning capacity and the return on capital. “They are also taking a close look at Government valuation in relation to the price asked. In the earlier part of the year, a large proportion of the sales would have been made up of purchases by established farmers of neighbouring smaller blocks, often financed with State Advances assistance.” SMALL-HOLDINGS

Smaller holdings around Christchurch had been in keen demand, especially if a reasonable home was included.

“Many city dwellers are appreciating the advantages of a more rural environment for bringing up a family, and the possibility of supplementing their income. Bare land is difficult to obtain in the one to five acre blocks, and has sold well. Larger areas requiring considerable capital outlay have met with buyer resistance.” Mr McCrostie said in the report that there were 500 registered real estate salesmen in the area, with 81 licences. Property transfers totalled 13,540, 88 less than last year.