Figures show drift north, rural slump

Press, 12 September 1986, Page 2

Figures show drift north, rural slump

By

PATRICIA HERBERT

in Wellington i The drift to the north and the rural recession are reflected in the Valuation Department's latest property price index, out today. The figures compare the first six months of last year with the last six months of 1985 so are of largely historic interest except that the trends they show have probably continued. They show a 2.78 per cent increase in house prices over the period, the lowest recorded since 1979. This was welcomed by the Minister of Housing, Mr Goff, as evidence that house prices were now trailing the inflation rate. He attributed this to the "restoration of responsible

economic management policies.” Freehold sale were, however, down 9.8 per cent from the December, 1985, half-year, indicating a sluggish market and producing a drop in the total sale price of 7.3 per cent, from almost $3672 million to just over $3403 million. This trend was reflected across all categories, except farms, as prices rose but sales volumes fell Sections rose 9.4 per cent in price; houses, 2.7 per cent commercial properties, 8.2 per cent and industrial properties 6.3 per cent Across New Zealand, the price of small holdings rose 1.8 per cent while the number of sales dropped almost 200. Fann prices fell 2.6 per cent and the volume of

sales fell more than a third — from 1370 to 882. Auckland’s puli showed in its section prices which topped the range at $63,402 against Oamaru at the other end of the scale with $7254. It showed also in the average Auckland house price at $146,307 compared with Greymouth at $41,194. Fewer farms changed hands during the first half of this year and those that did fetched prices often well below Government valuation, according to the Valuation Department report, said the Press Association. The report says the 882 sales of freehold rural land on the open market were 45.4 per cent fewer than the previous halfyear.