GREY PRICE OF BUILDING 27/- A FOOT

Grey River Argus, 24 May 1947, Page 2

GREY PRICE OF BUILDING 27/- A FOOT

Average Quoted to Land Sales Committee

“This is a problem ’that has caused us considerable concern,” said Mr M. Wallace, chairman of the Westland Land Sales Committee at its sitting in Greymouth yesterday, when commenting on an application by R. Marley (Mr C. R. McGinley) to sell to L. K. J. Francis a new house property in Cobden, at a price of £l7lO. Mr A. Wogan, representing the Crown, stated that the figure asked represented a cost of 33s a square foot for the building, where the average price of building in the district was estimated to be about 275.

The chairman, with, whom was associated Mr J. W. Greenslade, added that a recent ease that had come before the committee had been valued at slightly loss than 29s a foot, but it was a house that was constructed slightly above the average standard of dwellings. “We do not wish to discourage individual contractors or the State from going ahead with building," said the chairman. He suggested that the vendor obtain the services of an independent valuer to check over the cost lists for the construction, and to revalue the property. Builder’s Evidence In evidence, Richard Marley, a builder, of Cobden, stated that after taking all costs into consideration, he assessed the value of the property at £l7lO. He had taken out a building permit for £1250 for the house, but this was only a nominal figure, so that he could proceed with the workThe section had cost £9O four years ago. Mr Wogan contended that reputable local builders had contracted for similar houses at rates about 27s a square foot, whereas the vendor’s figure in this case was 335. The house under consideration contained a large percentage of sap wood, whereas the other examples cited were built of heart wood. Mr I. P. McMillan, in valuing the property at £1445, gave details of other houses in the district, which were being contracted for al figures ranging from 27s to 28s a square foot. To Mr Greenslade he maintained that these figures constituted a fair average price, and in some cases, were the prices asked for by sole tenderers. Mr McGinley: “You must. admit that many builders do not like build-' ing houses these days because prices arc so high?"

Witness: “No. We always, manage to get tenders.’*’ He added that the difference in ihe cost of heart and say timbers was about 14s 3d a hundred feel.

In making his submissions, Mr McGinley con tended that values were too often based on arithmetical methods, which did not always indicate the true value. Lists of actual costs in the construction of the house had been submitted by the builder, and when all expenses had been taken into consideration, the cost had been £1705. He maintained that, the committee was Io hear evidence on both sides. To take evidence from an independent valuer, would bo to accept a hvpothetical value. “If the price is reduced, it will be a grave injustice to Mr and Mrs .Marley,” added Mr McGinley. “As it is, the builder has pii—- • ig.j profit, and possibly face a loss of £250.” He suggested that the Act was not made for such purposes, and hat the builder has to be protected as well as the buyer. “If this is not the case, we shall find ourselves in the position where only the Govrnment shall be able to build houses,” he concluded in requesting hat the sale be allowed at the price asked.

“It seems necessary to have some confirmation of the accounts submitted as evidence,” commutated the chairman, in adjourning the case. He emphasised that the committee was concerned and did not want, to see any injustice done to the builder. Mr Greenslade, in supporting the chairman, said that it was not the wish of the committee to see buikl;ng retarded, but when it came to a matter of £250 on a house, it seemed a terrific jump in values. “We must verify the figures before we can go any further,” he added. The case was adjourned a week to allow the vendor an opportunity to bring forward expert evidence in the matter of costs.