THE PROPERTY MARKET

Otago Daily Times, Issue 21537, 8 January 1932, Page 4

THE PROPERTY MARKET

CONDITIONS IN DUNEDIN The opening of the new year, with the general uncertainty as to the conditions which -will prevail during the next 12 months, finds conditions, in so far as the property market in Dunedin is concerned, generally slack. This applies particularly to business in actual sales which, even allowing for the fact that this is a dull period for such transactions, is lifeless. It is the opinion among land salesmen at the present, however, that the demand for houses to rent is within certain limits quite satisfactory, with indications that things generally will improve during the present year. The reason for the slackness with regard to straight-out sales is practically self-evident —the reduction in wages, the large amount of unemployment, and the difficulty of arranging finance for buyers not in possession of the required capital all combining to make it unusually difficult to effect much on the basis of transfers of property. The classes of houses for which there is considerable inquiry for renting purposes are those —not necessarily the most up-to-date—close to or rather right in the city, for which a low rental of from 15s to 25s is being asked, and the modern, small bungalow within easy distance of the centre of the city which can be let for somewhere in the vicinity of 30s. For both these types the number of would-be tenants is fully up to, and in some cases exceeds, the supply. It is particularly noticeable that people at the present time are anxious to secure homes so situated that they will be able to avoid the expense of heavy tram fares, this evidently being one of the,directions which the economies enforced by the wage cuts are taking. It is fairly widely admitted that the amount of rent being asked has fallen since the beginning of the depression by from 10 to 15 per cent. It appears to be the general opinion that things have reached bedrock in connection with house properties, and it is hoped that with the improved tone in the wool market and the determination of the people to make the best of the conditions 1932 will see the beginning of a return to more normal business.