HOUSE RENTS.

Dominion, Volume 2, Issue 460, 19 March 1909, Page 5

HOUSE RENTS.

POSITION AS TO CITY PROPERTY,

FACTS AND FIGURES.

Some interesting evidence regarding house rents in the city and suburbs was given during the hearing' of the grocqrs' dispute yesterday in support of the employers' contention that the cost of living was no higher now than in 1902, when the existing award •in the trade camo into operation. One of tho witnesses, W. G. Eggers, land and ostato agent, stated that during the past twelve months house ront in Newtown, close to tho city, had gono down from 10 per cent, to 12J per cent., whilst at Island Bay, Miramar, and Maranui the decline was equal to from 30 per cent, to 40 per cent. His .Honour: Are tho localities where the drop has taken.place within easy reach of the tram servicer' . Witness: Yes. His Honour: Have you got & comparative statement showing tho amount of tho reduction in various localities? ' A Comparative Table. Thereupon the witness handed in tho following table, which he had compiled:— '

General Drop Forecasted. Replying to a question put by Mr. Grenfell, who represented the employers, witness stated that a reduction in prices was beginning to be noticed even in the/city. There were at the present time from 50 to 60 houses empty at Island Bay. His Honour: Then the houses in the city will be the last to be affected? Witnoss: It is certain that a general decline is coming. Mr. Brown (the employers' representative) : When I was coming down Cuba Street the other day I counted no fewer than five empty shops. A number of questions were then put to the witness by Mr. Carey, who appeared ou behalf of the workers.

Witness stated that if tho rents came down a little more they would be about the same as they were seven years ago. It was true that workers liked to reside as ' near the city as possible. What Is tho Reason? Mr. Carey: Is it not a fact that numbers of tho houses to let are mortgaged, and the mortgages are coming due?— But. that would not account for the decline. Can tho number of empty houses not bo accounted for by the fact that tho cost of living has become so dear that one family cannot afford solely to occupy a house?—As far as my knowledge goes that is not the cause.

On the average, how much dearer are the Tents now than they were in 1902?— I should say about 10 per cent. Many of the houses that are empty aro new buildings which were erected by small builders?— Yes..

Is it not a fact that small builders erect cno house, mortgage it, and then build another?— That is so.

And these builders depend on the. rent to meet the interest?—ln such instances. I suppose tho fact that they aro compelled to keep tenants in the houses would account for the drop?—l don't think so. You say that rents must come down in tho city?—l do. "Spells Ruin to Speculators." Well, how do you account for the fact that there aro sometimes 30 or 40 applicants for a house in tho city?— There is a largo demand for a certain class of house —especially those in a convenient position—and the workers wish to come, in to tho city. But you would not expect a worker to take a largo house in tho city?—Oh, yes, they do. You see they go in for boarders.' Will you swear that three or four-roomed cottages are rented at 10 per cent, less than the figure asked a year asro?—Yes, in Newtown. I don't say that that is the case in the city.

Mr. Brown (tho employers' representative) remarked that the drop which had been mentioned in connection with house-rents at Miramar and other suburbs would surely spell ruin to numbers of speculators.

In reply to a further question, put by Mr. Gnre.v, the witness stated that Chinese usually had to pay more rent for a shop than a .European.

T ... ' Original Present locality. Kooms. • rent. rent. Hiropi Street ... 6 25 6 22 6 Hiropi Street ... 6 22 6 20 0 Hiropi-Street ... 7 27 6 23 0 Hiropi Street ... 7 28 0 24 0 Owen Street ... C 25 0 20 0 Owen Street. ... 5 22 6 20 0 Owen Street ... 4 20 0 15 0 Constable Street ... 6 . 26 0 22 6 Newtown. Avenue-..,.-4■■.-' 17' 0. - . 15 0 Adelaide Eoad ... 3 15 "0 13 6 Hansen Street ... 6 22 6 20 0 Crawford Street ... 6 25 0 • 22 6 Mortimer Terrace ..:\ 4 . 14 ' 0 11 0 Aro Street ... ... 5 22 6 20 0