BUILDING COSTS

Evening Post, Volume CII, Issue 17, 22 July 1921, Page 7

BUILDING COSTS

HOW THEY HAVE INCREASED

FIGURES FOR FIFTEEN YEARS,

An indication of the increa-se in the cost of building in the suburbs of Wellington during the past fifteen years was given to. the Assessment Court to-day by Mr. F. Martin, District Valuer ■of the Valuation Department.

Mr. Martin stated that in making valuations he had to fix some definite basis. The sales that Wore taking place were in excess.of the'old Government 1 valuation, so much s"o that in some cases they' were treble that valuation. It became necessary., then,'in order to arrive at something like a reasonable market value, to take into consideration whether he was going to allow for the cost of replacement of buildinga. Tho cost of. replacement was not always a- safe thing to take into account, but in .connection with buildings for which there was a great demand it was the usual procedure in the Old Country and in the United States. When he took into consideration the sales that were being made —the actual sales of land, and sales of land and buildings—he found that if he allowed anything like a complete building value.- on »' reasonable percentages of increase, he would have land on which houses were built valued at something like £500 or £600, whereas sales of adjoining land proved that they were not .worth half that amount.

In regard to building costs,', Mr. Martin said that in 1905, taking the average five-room ed house, the coat per square foot of floor space was 6s 6d. In 1906 that price was increased to 6s Bd' and in 1907 it was 6s lOd. From July, 1907, until 1908 there was a slight slump in the Dominion, as well as in other parts of the world, and the price dropped to 6s 4d. The nrice- rose to 6s 7d in 1909, and increased as follows \n tho subsequent years :—l9lO, to 7s; 1911 7s 2d ; 1912, 7s 6d: 1913, 7s 9d; 1914, 8s 6d; 1915, 10s; 1916. lls 3d; 1917, 14s 6d; 1918, 16s 6d; 1919, 17s 6d; 1920, to 20s. The same type of buildincr to-day cost from 20s to 22s 6d per square foot of floor spate for the' best class of building material.' ! The valuing system employed by the Department was based on a sliding scale, varying from 15s to 20s per square foot, according to the type of building material used.

At a later stasje in the proceedings. Mr. Martin stated that lie quite bellovad the cost of building would come down.