REAL ESTATE

Evening Post, Volume CIX, Issue 124, 28 May 1930, Page 10

REAL ESTATE

SOLIDITY OF DUNEDIN

REVIEW OF PROPERTY MARKET

(By Telegraph.)

(Special to "The Evening Post.")

DUNEDIN, This Day.

Mr. L. D. Ritchie, president of the Real Estate Institute of Otago since its inception, was re-elected to that office at the- thirteenth annual meeting last night. . In reviewing the operations of the property market during the.past year, he stated that the advance in the bank rate had fortunately not affected theinterest rate for ' first mortgages and finance was available for all 6oun& business offering, but se'roud mortj>«e-ec* looked for a higher rate than formerly, and were not inclined to lend on such small margins as heretofore. The losses of second mortgagees, of residential properties in this city were wonderfully' few. This spoke volumes for the industry and integrity of those working to secure their own home on easy terms. Building had slackened off somewhat, but tho supply always kept pace with, the demand, and although it was sometimes suggested that Dunedin is not going ahead very fast, those with an intimate knowledgo of the suburbs were amazed at their transformation in all directions. Land that a few years ago was vacant was now occupied by mod.--em, well-kepf homes. • "Business," proceded Mr. Eitehie, "cannot be described as brisk, which 13 not surprising, in view of tho existing economic conditions^ The fact that returns kept up as they do emphasises the oft-repeated saying that Dunedin is a 'solid' town. During last year, taken as a whole, business was fairly good and prices were satisfactory, particularly those for busjness properties in the city, which were in keen demand. The demand for residential property has lessened during the last couple of months, and buyers will no doubt soon realise it is wise to take advantage of the existing market. RURAL VALUES TOO HIOH. "Farm lands are not meeting with a ready sale, and those associated with pastoral and agricultural interests are very definite- in their assertion that tho price of land must be adjusted more in. keeping witlf present-day prices forproduce if tho occupant is to receive a reasonable return on his capital and labour. This country has already suffered unduly from the inflation of land prices, but tho lesson involved is not readily learned. "It" is not wise to play tho role of prophet," concluded Mr. . Eitehie, "nevertheless I feel, that though recovery may.be slow the bottom of thecurve has been reached. Tho wool market seems to have a hardening tendency, dairy produce remains steady at payable prices, the stock and share markets both in Australia and New Zealand are definitely firmer, and a better feeling is abroad. We should perhaps not look for much improvement until next produce season, but there- is some ground for the hope that better times are in store for all sections of the community, and particularly an, economic improvement that will do much to, remove the present deplorable amount of unemployment, with all tha misery it entails."