The Land Boom in Melbourne.

Evening Star, Issue 7420, 16 January 1888, Page 4

The Land Boom in Melbourne.

The sales of real property in and around Melbourne for the year 1384-85 was approximated at L 10,000,000. This was an exceedingly active year in dealings in and subdivision of suburban land. The sales in the year 1885-86 were approximately L3,Q00,000. This year there is the enormous increase of nothing less than L 10,000,000 over last year, or a gross total of sales of L 13.000.000, which by the imperfect sources of information available can be actually accounted for. The freedom with which operations have been conducted does not arise from vast amounts of English and foreign capital having been brought Into the Colony. This is the popular idea, but it is not borne out by the men of business who have conducted the transactions in property, especially during the past six months, when sales have been most frequent and of large amount. No doubt some English money has arrived here, variously estimated at from L 1.000,000 to L3,000,0e0, with the object of laying it out on mortgage rather than permanent investment in property, and more could easily be obtained at very short notice, bat the large dealers in property have seen very little of it, and are disinclined to believe that any very large amount has as yet reached Melbourne. This is not improbable either, seeing that investments at depressed prices have been obtainable in the adjoining colonies, while in Melbourne full rates for the time being have been demanded. It is known that a considerable investment of English money has been made in Sydney, and probably its amount approaches L 3,000,000. To some extent this may react on this Colony by creating am easier feeling among institutions doing business in both places; but for the immediate causes of the boom we must look within our borders rather than outside them. The increasing elasticity of the revenue, the absence of drought, and the prospect of good harvests are among the causes which operate largely in cheapening money. Local industries of every description are progressing satisfactorily, This in no small degree results from the better relations existing between labor and capital, and the prospect of trade disSutes being settled without recourse to the isturbing measures of the past, which always tended to cripple expansion and enterprise. The prominent feature of dealings in property has been in connection with the city of Melbourne itself. Not only have these dealings been on an unprecedented scale, but they have established a rise in the' value of city property which it will require some great national disaster to pall down to any appreciable extent. Fluctuations may occur from time to time as the property market is affected by contingencies whfoh must cling to it under any circumstances, but unless all the business men of the city are bad judges, these fluctuations trill not be serious. In the near future the cnattces are considered favorable for a further

iestablishment of recent prices, and the Exhibition year is confidently looked forward to to turn more capital towards these shores. The genera), public will understand, if it does not already, that the L 12,500,000 Worth of property which is known to have changed hands is not represented by sovereigns. With city properties 20 per cent, of the purchase money may be cash, and with suburban properties much easier terms are readily obtainable. It is quite possible that the gross transactions are larger than we have represented them, because there are many agents who do not wish their business disclosed, and who rarely report sales except in the dubious words " at a satisfactory figure "; some of these private transactions being on the most extensive scale. On the other hand, where two or more firms of agents are Conjoined in one transaction, each firm takes credit for the full amount of the dealing, and not for its proportionate share. The possibility also of making a very good livelihood, if not a rapid fortune, by estate agency, has particular attractions, and the city and suburbs, but chiefly the suburbs, are crowded with small agents, who, during the past year, have turned over large sums of money, and have, in many cases, established themselves on a sound basis, where two years ago their prospects were nil, and some were not even in existence.

Though the rise in value has been general, it is in the city above all. By the " city " may be understood that block which is bounded by Spenper street, Flinders street, Russell street, and Little Bourke street, or certainly not further north than Lonsdale street. Within this area property has changed hands in all directions, but chiefly in Collins street, Elizabeth street, Flinders lane west, and Flinders street. Collins street properties have risen by leaps; syndicates have cleared tens of thousands of pottnds, and have held for no longer than a lew months, sometimes a few weeks, or even days. No general idea can be given of the rise per foot, as eaeh property is governed by different conditions as to buildings, depth of land, accessibility to front and rear, nature of leases running, and a host of minor considerations which only suggest themselves to those who figure these details out. But two or three instances may be given of buying and selling prices which come within the past twelve months. The premises occupied by Messrs George and George were sold to the present owners for a little less than LI,IOO a foot, subject to the leases thencurrent.butthepurchaserssecured &n agreement to break the leases, and have since refused L 2,000 per toot. Another dase is that of the land with 52Aft frontage to Collins street, next the English and Scottish Bank. In September this was purchased for L 65.000, then considered a top price. A few days ago it was purchased by the Stock Exchange of Melbourne for L 120.000, or an advance of L 55,000 in three months. Although this represents nominally L 2,280 per foot, there is a Quoen street frontage as well which has to be taken into account. Lower down the street, Mr M'Caughan purchased Rowlands and Lewis's premises; for L3»,000, and in four months sold it for L 55.000, or L 20.000 profit. In Flinders lane, Mr Henry Miller purchased Oibbs, Bright, and Co.'s premises for LBOO a foot| a large advance on previous rates in that part of the lane. The pulling down of the banking premises lately occupied by the Bank of New Zealand to erect on the site an eight-storey building is a further indication of advance, for with the most recent appliances it is no more trouble to ask a man on the top floor if he is in and be shot up to him in an ebvator than to enter a ground floor. The proprietaries who hold the large city properties arc reputed to be financialy strong. In submban land large increases of value have accrued, and purchasers of subdivisional blocks have in many cases done remarkably well. In the Sydney road, Brunswick, land worth L2O to L3O per foot a year ago is now »vorth LIOO per foot and over, and throughout the northern suburbs prices have risen in excess of the most sanguine expectations ; but if the railway facilities which are hoped for are given, there will be a much larger exchange of properties next year. We may instance Northcote as a suburb very rapidly rising in public estimation. The Fitzroy Junction Estate, Northcote, purchased for LIB.OOO about the middle of November, was disposed of three weeks later in subdivision for L 27.530; and as the Railway Department had to purchase L 3.000 worth of land for a piece of the block excepted from sale, the owners made L 12,830 on their bargain. Land in St. George's road, Northcote, worth L 6 pci foot twelve months ago, is now selling at LIS ; in High street, the rise is from L 5 to L3O. On the Box Hill line, Camberwell and Surrey Hills have made great strides. Up to L 2.500 per acre has been realised near Camborwcll station, and business frontages up to L3O per foot. At Surrey Hills land not worth 15s a foot three years ago is selling now at Lls, being, of course, close to the station. At Burwood land has risen from L7O per acre to over L3OO per acre. In Glen Iris and Malvern there has been a tremendous Bpirt, blocks of land selling freely at high prices in all directions, consequent on the approaching construction of the Outer Circle Railway and Glen Iris line. The older districts, like South Melbourne, have in like manner participated in the general advance. The advance has been chiefly in the direction of Albert Park, where there are still plenty of sand wastes to build on. Clarendon street property, near its junction with Sandridge road, has reached L 125 per foot, and refused. Sandridge road property, near Clarendon street, has been sold at LIOO per foot. In Bridport street property has sold up to LGO per foot. The principal increases are in Canterbury and Normanby roads, Albert Park, which have risen from 50 to cent, per cent. The following table gives the approximate amounts of sales reported to the ' Age' during the year by some of the largest firms, but as many sales have been withheld from publication by some agents from time to time, the estimate is under rather than over the truth:—

If to this be added the unrecorded transactions of the year, which may be put down at something like L 1,500,000, the gross total of sales exceeds Ll<t,000,000; but making allowance for "sales in oonjunction," which have been common both in city and surburban properties, the net sales probably do not exceed L 10,000,000.—' Age.'

Munro and Bailticu— Total. City property £2 222,444) f»Q 1(11 Cfi>> Suburban 000,093)" A,o,XJ^,DiJii Meroantile At»cn,cy Co.— City property .. 653,650) , 1,001,266 f Suburban 1,657,906 C. J. and T. Ham 1,555 654 Frascr and Co. 690,351 P. L. Flint—Suburban 611,891 G. VV. Taylor 546,395 Grigg and Kimberley .. 350,000 Macmcikan and Co. 317,368 G. W. Selby, jun., and Co.City property . 221,936) Suburban 92,381)' 314,367 Hammill and Forrester 222,811 J. V.ile and Son 213,858 R. Walker(Novcmber and December only) 178,841 13. King 170,128 Gcramoll, Tuekclt, aHd Co. 179,828 Patterson and Sons 161,365 levers and Sons 155,740 G. 0. Langridgo and Son 151,077 Looker and Sons 177,642 J. Clark and Co. 145,222 J. Buohan and Co. 134,031 L. C. Wilkinson 120,720 Gieig and Murray 120,334 Buckhurst and Buxton 140,000 M. Larkin 115,000 Firms under £100,000 .. 1,374,819 Total .. £12.927.931