WELLINGTON RENTS

Dominion, Volume 29, Issue 183, 1 May 1936, Page 10

WELLINGTON RENTS

Highest in Dominion For Many Years COMPARATIVE FIGURES Wellington has the distinction of having higher average rents than any other centre in New Zealand Index numbers for rents show that Wellington rates have been higher for a decade than those of Christchurch, Auckland and Dunedin. The peak year for rents in New Zealand was 1929, when, official figures show, the average rent for a fourroomed house in Wellington was 27/-, compared with 21/6 in Auckland, 21/in Christchurch, and 17/- in Dunedin. For a five-roomed house the average rent in Wellington was 35/-, compared with 26/- in Auckland, 27/- in Christchurch, and 26/- in Dunedin. For a six-roomed house the average rent was 43/- in Wellington, 31/- in Auckland, 32/- in Christchurch, and 29/6 in Dunedin. The index number of Wellington rents has never been lower than 929 since 1925, whereas that for Auckland has been down to 696, that for, Christchurch to 747, and that for Dunedin to 751. In every year the index number for Wellington has been higher than the average for the four centres. For the last quarter of last year the average of the four centres was 811, but the figure for Wellington was 961, as against 725 in Auckland, 756 in Christchurch, and 803 in Dunedin. The nearest approaches to the top figure were in some of the provincial centres, the index figure being 80S- for New Plymouth and Palmerston north, 791 for Napier, and 776 for Masterton. Nelson was in the comparatively high grades with 748, lower figures being Timaru 709, Gisborne 675, Invercargill 677, Greymouth 655, Blenheim 614. A comparison of newspaper advertisements shows that on the same day as five-roomed houses were advertised for from 30/- to 35/- in Wellington, similar homes were offered at from 22/6 to 27/6 in Christchurch, from 22/6 to 25/- in Auckland, and from 22/6 to 27/6 in Dupedin. A Wellington six-roomed house at Karorl bore a rental of £2/10/- on the same day that one was advertised for 37/6 at Shirley, in Christchurch, and another was offered for 35/- at St. . Kilda, in Dunedin. Furnished houses in Wellington were offered at £3, while similar dwellings in Auckland were available for £2/5/-, and In Dunedin for £2/10/-. The only six-roomed furnished house in Wellington advertised on that day was one for which the owners wanted £5 a week in rent. RISES EXPLAINED Christchurch Increases Only Small Confirmation o' statements that there has been a rise inthe rents for residential properties in Wellington was given by several land agents who were interviewed by “The Dominion” yesterday, but inquiries in Christchurch showed that there were, in the knowledge of most house agents, no increases comparable with the 22 per cent, imposed in Wellington. However, there has been a small increase of rents for houses let at 35/and under in Christchurch. The proportionate increase has been greater for the lower rents, a rough average increase of 2/6 applying equally to rents of 30/- and rents of 12/6 to 15/-. The movement was said to have become apparent about the middle of last year, when it was noticed that the lead was being taken by the Public Trustee, who has control of some thousands of houses in and around Wellington. The subject has particular interest at present as the Government is considering another rent restriction Bill this session. “It is true that there has been a considerable rise in the rents of residential property in the city during the last six months,” said the head of one of the old-established firms of land and estate agents in Wellington. “This has been mainly due to the great scarcity of houses, and is consistent with the law of supply and demand. Every land agent in Wellington has been instructed to raise the rents, with the result that rents have gone up anything from 2/6 to 7/6 a week. As a rule the rents have not been raised in the case of good tenants, but on a change being made there hag been an addition, and even at that there is still an eager demand. ■“lt must be remembered that the rise in rents made recently does not bring back the earning power of houses to what they were, speaking generally, in 1928. Few people suffered more severely than landlords during the depression. The landlord who got out at the end of the year with a loss of 10 per cent, was lucky, as we know many whose loss ran up to 20 and even 30 per cent. There were many cases where the landlord, knowing the tenant to be out of work, allowed him to continue to occupy the house until he got into work again, which was often some months. Really the upward trend is only the beginning of a return to normal times, and is pretty well in keeping with the general improvement which has taken place' in the country s affairs during the past year. “I notice that some people are blaming the Public Trustee for the rise in rents.” he said. “The Public Trustee has to follow the market, as he is only the trustee for the property-owners, and must do whpt he can to produce the best return; otherwise those owners would say that he was not a good trustee, and would take their business away from him.” Complete agreement with all one of the points expressed by Or. W. Duncan In an Interview on the housing problem published in “The Dominion,” was voiced by one prominent tVellington land agent. The one point on which the agent disagreed with Mr. Duncan was a reference to the need for a landlord to obtain 10 per cent, on his outlay on house properties in order to cover interest 1 on his capital, the rates, land tax and cost of maintenance.

The agent thought 10 per ceut. was quite a reasonable figure for a landlord to expect when he bad to pay 6 per cent, to 6J per cent, on mortgage, but when it was possible to get money at from 4 per cent to 4} per cent., then 10 per cent, was an excessive figure to expect. He thought from 8 per cent, to 81 per cent would lie a reasonable figure to be sought by laud lords who only paid the lower figure on money Invested. Those intending to invest in the future should plan to get something less than 10 per cent, gross interest on their capital outlay.