LAND SPECULATION

New Zealand Times, Volume XLV, Issue 10450, 1 December 1919, Page 4

LAND SPECULATION

PRICES SOABSNO A WELLINGTON RESIDENT'S WARNING. A Wellington resident' who has just returned from a visit to northern districts, states that laud speculation is ril'o, and some (to him) sensational prices aro being paid. , In ono caso a 50-acro highly-improved farm was sold at £l2O per acre. Tho purchaser appeared to be quite satisfied at his bargain, and was confident that by hard work and intensive cultivation after the French system (ho was a returned soldier) ho could make a splendid living. In another caso land purchased.for £35 per aero in 1917 was sold for £54 per acre in 1919, an advance of £l9 per acre in two years. As fchisi area consisted of 10 acres, thero was a substantial profit from thounearned increment." In some districts—Waikato, Hauraki, iSay of Plenty, and also in, the far north —thero appeared to bo a steadying influence prevalent, but there .was still a groat.rush for land and a regular "boom" was on. It was questionable whether such high prices were justifiable, but in many cases experienced farmers, not novices, were tho purchasers, and they appeared to bo men vdi.o knew the valuo of land and had a good appreciation of the future.

"If, however, tho land now being purchased at such high figures is to givo a satisfactory return to tho present owners," eaid he, "then good-byo to the chance of any substantial reduction in the cost of living. For it appeal's to mo that either ono section of the community or the other must got hurt. If present land values are to be maintained or increased then the people are in for hard times; if tho cost of living is to bo reduced then land values must fall, and thero will be ohaoa.

"Some steps should certainly bo taken by the Government to stop this, apparently, wild speculation, and some check given to the practice of settling returned soldiers —some not thoroughly experienced farmers on land the price of whioh has been unduly indated."