WELLINGTON RENTS.

Evening Star, Issue 15136, 18 March 1913, Page 3

WELLINGTON RENTS.

BUILDING AN UNPROFITABLE SPECULATION. [Special .to the Star.] . .WELLINGTON, March 18. A continued scarcity of good houses of small size exists L Wellington City, but there is aho a plethora of. shops, many heing unoccupied. A house agent contributes to the ‘Post’ some interesting opinions on this situation. He says the recent laising of the city tram fares has bad much to do with it. People lump rent and tram fares together. If 17s .is the rent, and the tram fares are increased by Is a week for three people the rent becomes £l, and so an emigration from the suburbs is the result- That has actually taken place. People are ready to snap up houses in the city. “Yes, Wellington is certainly overshopped. You can see that for yourself. Now, if every vacant shop you see along the main routes ami in sida streets was replaced by a house we could fill them all. borne people are living in the shops, or at least over the shops. " It is really remarkable to see the mini her of vacant shops. No, this is not a sign of slack business. It means that the supply in certain localities is in excess of the demand. Take Adelaide road for example. If every empty shop there were replaced by a decent dwelling that dwelling could be let, and well let. “ Believe me, the landlord has not all his own way in the matter. I.think you may take it from me that to build now at present prices of materials and labor, and with present restrictions of labor, is not good business, for renting is not profitable nor even a prudent proposition. The return upon the capital outlay is really very small. I have in my mind a Kelhume residence well Jet at £75 a year. It is returning the owner 2’ per cent, upon the cost of the laud and the building. To build rows of cottages is certainly not a good spec, with money at the current rates of interest. Aon will find houses being built all over the place, of course, but they are being built for the most part for private people, and not for renting.”