BURDEN OF COSTS

Otago Daily Times, Issue 23354, 20 November 1937, Page 20

BURDEN OF COSTS

BUILDING INDUSTRY IN SYDNEY EFFECT OF HIGHER WAGES '■ (Special to Daily Times) AUCKLAND, Nov. 19. The adverse effect on building in Sydney caused by the recent increases in the basic wage of workers was mentioned in an interview by Mr Harold Leventhal, a prominent real estate agent of Sydney, who arrived by the Strathmore. Mr Leventhal said that 40 per cent, of the cost of building was influenced by the higher wages, which directly affected the prices of all materials in addition to the actual constructional costs.

“Real estate business in Sydney is very active at present," Mr Leventhal continued. “ Many large building programmes for high and medium-priced fiats' are contemplated. Nearly 300 blocks of flats, including many with 80 separate units in one building, are now ready to be built, but whether such buildings can be continued it is difficult to say. My own opinion is that too many flats are being constructed at one time, especially in view of the increased production costs.”