THE PROPERTY MARKET.

New Zealand Herald, Volume LXVII, Issue 20596, 21 June 1930, Page 19

THE PROPERTY MARKET.

MUCH BRIGHTER OUTLOOK. BUYERS BECOME ACTIVE. SOUND INVESTMENT REALISED. THE SWING OF THE PENDULUM. Ever sinco tho days when noinadic tribes ceased from their wanderings and unconsciously, perhaps, formulated tho first principles of property ownership, real estate has always been a sound investment. There can bo slumps in land property just as there can bo slumps in proverbially sound stocks, but real estate is permanent and variations in valuo readjust themselves naturally. Tho growth of civilisation, from tho timo when serfs worci allowed their own free holdings, has witnessed an ever-growing desire in every man for a " homo of his own." What waj once a cherished ideal has now bocome almost an economic necessity. Tho man with a home of his own has a real and lasting asset. Similar arguments apply in the case of the man on tho land, lie may only have •a farmlet of four or five acres, but ho has his home and, what is more, he is producing tho necessities of life. Fluctuating prices for his products cannot wholly destroy the security of his holding, and recovery is never long postponed Thcso facts aro generally recognised and in tho faco of them it is difficult to explain why thero has been a pronounced quietness in the property market during the past two or three years. It is true that there has been a period of readjustment in values, but Auckland City and province aro in a position to offer in hefuso and land property better investments than any other part of New Zealand. A review of past operations suggests very strongly that the only handicap to normal business has been the psychological result following undue speculation. Values at Rock Bottom. This handicap is now definitely disappearing and tho property market in Auckland is much brighter in tone than it has been for many months. Just as tho speculative builder has practically gono out of tho market so also has tho speculative buyer, notwithstanding the opportunities for obtaining bargains. A certain amount of speculation, of course, is tho life blood of any form of trade or exchange, but when it is too pronounced its danger cannot bo over-estimated. There iias been a fairly large body of people who have been in tho position to buy homes of their own on terms favourable to themselves. Those who have been operating on tho house and.land property market recently have obviously been in a position to buy for a fairly lengthy 'period, but in a falling market they have waited until they were sure that values had struck rock bottom. Now the reverse swing of tho pendulum is starting. Tho market is brightening and those in a position to buy property aro becoming active. Thero is no rush on tho market to send values rocketing skyward and bring about extreme speculation and boom conditions. Thero is a steadily growing demand, accompanied by sane, unhurried buying; values aro on tho upward trend, slightly at present, but an acceleration is inevitable. Increased confidence has told many people that now is the timo to buy. Conditions Favour Buyers. With tho market conditions now in favour of the buyer, there aro opportunities in plenty for those in search of house and land property in Auckland. City and suburban house property is offered daily in most attractive form and reserves cannot be expected to go any lower. Realising that purchasers of houses will be content only with tho best modern living conditions, intending sellers have, in many cases, taken steps to meet the demands of tho market. Improvements and extensions to the transport system of the city, cither projected or already caried out, have thrown open a number of building sections which were looked on with disfavour two years ago but which now form a highly attractive investment. Tho actual cost of building and building materials is reasonable and—this is highly important—Auckland architects seem to have developed most admirably a class of dwelling eminently suited to tho climate and general living conditions of tho city. Not for many years has the property market, in its many forms, offered such opportunities to tho right typo of buyer. Buyers should not bo slow to appreciato this fact.