THE PRICE OF LAND.

Dominion, Volume 1, Issue 177, 21 April 1908, Page 2

THE PRICE OF LAND.

< IS THERE A SLUMP COMING?;' There is somp, diversity of opinion pn ; the< prediction that there is'gomg to be a slump in the price of, landj writes our'; M'airarapa correspondent.-Among business people".and land, agents'as far- north, as .Napier, reservedly stated that farm lands have long, beeu at V fictitious 'value, principally owing to the high price of wool, and that, now that there has been a fall in the. market ;of ,that commodity, there must? be a corresponding decrease in land Rvalues. The fall,.,in.ithe price of wool at present means practically, 2s. 6d. per fleece.. On two-sheep country,; this means ss. iper aero interest,; which.ire-' presents' capital to the extent of £5. It. therefore means that there should be a fall in .ordinary sheop.land, values,of ,£s.,an acre, The farmers naturally laugh /.at' this (deducr tion; and point out* that it. would bel ridicu-. lous for them to accept'proppsitiorisof '-this description. They further state tliat.in few.cases in'.lNW..Zealand.did land reach; such a.price that,it..was not interest-bearing,, and:'that' now. there is, no, reason for,/them ..to- lower, their!.'land Rvalues simply ' on; .account ,;of a. . bility .will" 'pe,'£n'ly' of, a ttemporary i natiire;i There is,,.'hp' [ douljt li .a,;great„deal:'to' be,said; in, fa vow; j.pF; Your,' cbrri£?' porident, .was" .'informed,', .of a, • Hawke'sV -Bay station ..'upon, which ~ two.* successive . owners mafc each' £28,000 profit .'on their' capital,: The, retilrn'must close : Uj>oii jr 2o'por i cent. 1 In.. Wa'irarapa' there *Kas : Beeii : equally good farm business' on sheep lands!'-ana ' much moro.so in dairying, while iii agriculture the; returns have; brought the capital; value of the land up to £40 per.acre.;' There' seems every likelihood, however, that in land business, for some tinie at: least,' vendors mil be asking'for more; cash. • / ,