PROPERTY VALUES

Greymouth Evening Star, 18 October 1946, Page 2

PROPERTY VALUES

REPLACEMENT COSTS NOT CONSIDERED BUILDING DISCOURAGED (P.A.) WELLINGTON, October 17. The view that if property values were not pegged so arbitrarily by land sales committees most vendors would be willing to meet the market was expressed at a meeting of the Wellington Chamber of Commerce. It was strongly represented that, in fixing values, committees should take more account of replacempnt posits Mr C. d'. A. George said that the low values placed on properties today must affect private building of homes. Prospective builders were not prepared to sell 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 home, but was not able to build a new one at present costs. At present values had no relation to rebuilding 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.