Sharp fall in land values

Press, 31 August 1989, Page 16

Sharp fall in land values

By

CHRIS MAHONY

Steep drops in South Canterbury land values revealed in the latest Government revaluation jeopardise the prospects of farmers seeking to refinance.

Figures released to the Waimate District Council show land values have dropped by up to 23 per cent in some ridings since the 1987 revaluation.

The average throughout the district is 12.8 per cent.

Councillor Keith Bowie said, “these drops could have severe implications on what were viable farmers because they won’t be able to refinance — it will be an absolute disaster.”

He described the figures as firesale valuations and was one of several councillors to challenge the validity of the system used. They said the figures were based on

a very small number of sales and did not take into account a recent upturn in farming and prices. However, the district valuer, Mr Allen Johnson, told the council that the figures reflected sales between the Rakaia and the Waitaki. The ridings which had substantial declines in values had a lot of properties badly affected by market decline.

“Market evidence told us that downland properties in this area had dropped by 15 per cent. We don’t set the market and with things like the drought it is unrealistic to expect things to take off,” he said. Mr Johnson said the apparent firming in prices in the last two months had yet to be confirmed.

He said the revaluation figures gave an accurate indication of values at July 1.