HOUSING SCARCITY.

Northern Advocate, 22 June 1920, Page 3

HOUSING SCARCITY.

HOW AUCKLAND FARES AN ACUTE SITUATION AUCKLAND, June 21. The present state of the property market in Auckland was made a subject of some inquiries by a "Herald" reporter among business men in close touch with it. The information obtained was to the effect that for town property, there was a great demand for any land with a building on it. This was du c to the supply of business premises being short of the demand. The building restrictions imposed by the Government, in the opinion of one man, were in a measure responsible for the acute shortage which was being experienced. He said that this had the effect of causing people, who otherwise might b e induced to build premises and to some extent relieve the present acut e position to stay their hand in the meantime. These restrictions implied that the Government reserved the right to say whether a building was essential or nonessential. He knew of one firm in Queen Steet which proposed erecting new premises at a cost of £100, 000, but it was a question whether Government would grant a permit for the commencement of the work. The effect of this would be to increase the price of the present business premises. He said that just now he could not find anything suitable for warehouses, and the rents offering wer c most liberal.

Quite a number of business men required offices, but these were not procurable. . The cause of the shortage was largely that within recent years there had been considerable additions to the business community and little or no building. A number of returned soldiers had secured different agencies while in London anj had set up in business on their i)wn account in th e city, thus entering into competition with others for warehouses and offices. Other soldiers had secured grants from the Repatriation Department which enabled them to start in business for themselves. Music teachers were having , a terribl e time in their endeavour to secure rooms, and the consequent competition had had the effect of forcing up rents.

Discussing the market for house property this authority said the demand which had been abnormally heavy was easing slightly. The soldiers' housing scheme of the Government had practically been suspended. The position jiow was that h e had sold a house to a soldier and the purchase" was approved about the middle of April, but it had not yet been confirmed by the authorities in Wellington. Even were it confirmed there would b e some delay before the money was available.

The easing tendency, of the market applied only to houses, for which from £1000 to £1200 was asked. For property with a highervval e there was still a keen demand. Of course it all depended upon th e locality of the house.

In his opinion prices would not come down to any great extent. The high cost of building material was likely to continue, and the value. of a property must b e its replacing value. No one would sell a house for £800 if v it cost over £1000 to build another.

Continuing, he said that it was difficult to say how long high prices for residential properties would continue. This fact had to be taken into consideration: that th e falling off in building during the war period had to be made up; in addition to which there was the extra demand caused by many soldiers marrying, and also the arrival in the Dominion of a great many immigrants who were seeking to establish homes for themselves. The supply was not overtaking the demand and house pro perty was very scarce. He knew of a woman who had four small rooms vacant near the city, and for these unfurnished she was able to get £3 3s a week. She had quite a number of applications for the rooms. This merely served to show what a demand there was for houses. He expressed the opinion that it would be at least two or three years before any substantial relief from the Present high prices, for house property could be expected. Even then they would not return to a pre-war level.