House price index up 16.8 p.c. in year

Press, Volume CXIII, Issue 33252, 15 June 1973, Page 3

House price index up 16.8 p.c. in year

(New Zealand Press Association) WELLINGTON, June 14. The house index for 1972 increased 16.8 per eent, the largest such increase recorded over the last 13 years, says the annual report of the Valuation Department, tabled in Parliament 'today.

The previous highest I increase in the 13 years! (was 11.1 per cent, in' 4971. The section price index i rose 16 per cent for 1972, 'compared with 10 per cent in (1971. ; The house and section price indexes measure changes in the average level of prices paid on the open market 'within 38 selected urban !areas. The number of house sales; at 33,144 was up 17.4 peri I cent over the previous year,: and section sales rose 25.4 'per cent, said the report. I The housing turnover rate was 6.2 per cent of all houses. ; “Three-quarters of the section sales, and just over two-thirds of the house sales were in the North Island,” the report said. CHRISTCHURCH FIGURES “Of the four main regions, ’ Wellington had the highest average prices for both sections and houses ($4467 and $15,820), followed by Auckland ($4326 and $14,366), Christchurch ($4452 and ’ $12,464) and Dunedin ($2376 ; and $9455).” i In 1972 the department I recorded 4638 open market ■ sales (excluding family sales) of freehold farm land — an I increase of 11.6 per cent over the previous year. Family sales of 1206 compared with ' 1019 in 1971, an 18.4 per cent ’ rise. ; Excluding family transactions and leasehold sales, there was an increase in the ; number of sales of separate i farm units for the dairy, fati tening, grazing, and arable . farm categories. Sales of horticultural farm; ; units fell but this was more; ; than balanced by increased; ■ sales of blocks of uneconomic! ( size, the report said. AMALGAMATION During 1972, 42.9 per cent; , of purchasers of farm prop-, erty in -the main farming; ; categories were farmers! ; enlarging their holdings.] ■ Another 13.8 per cent were; farmers who had previously; [ sold a farm. Businessmen buying farm; ' land represented 5.4 per cent; of the purchasers, new farm-i

lers accounted for 32.8 per [cent, and those wishing to ibuy property for non-farming ■use represented 5.1 per cent of total purchases. Price levels, as measured by the farmland sales price index, continued to rise in most districts, the increase being greater than in 1971. The index showed a rise of 7.2 per cent over the country.

r| compared with 2.3 per cent Lin 1972. ’! RAPID CHANGES ! Government valuations at I .(present could be outdated] J] when they were issued, said ; .'the report. J! The year’s significantly; ; i higher volume of house and ■;section sales had placed a! fI severe strain on departmental; , I resources.