PROPERTY VALUES

Evening Star, Issue 25926, 18 October 1946, Page 6

PROPERTY VALUES

MORE ELASTICITY URGED ARBITRARY PEGGING RESTRICTS SALES (P.A.) WELLINGTON, October 17. The' view that if property values, were not pegged so arbitrarily by land sales committees more vendors would be willing to meet • the market was expressed at S'meeting of, the Wellington Chamber to-day. It was strongly represented that, in fixing values, committees should take more account of replacement costs. Mr C. D. A. George said that the low values placed on property to-day must affect the- private ’building, of homes. Prospective builders were not prepared to 6ell their present homes unless circumstances forced them to do so when no account was taken by the Crown of the huge increase in replacement costs. For instance, a man transferred to another centre was often forced to sell his homo, but was not able to build a new one at present costs. Values had no .* relation to building costs, and this was undoubtedly discouraging private building at a time when homes were urgently needed.

Members agreed that there should be some elasticity about property values, especially because of the way in which values for other things had soared. It was stated that the value of a house property to-day was pegged at what it was four years ago, and'this, in the light of other increases in costs, was manifestly inconsistent.