BUILDING SHORTAGE

Otago Daily Times, Issue 23811, 18 May 1939, Page 7

BUILDING SHORTAGE

DEMAND FOR BRANCH FACTORIES INQUIRIES FROM OVERSEAS EFFECTS OF RENT RESTRICTION (Special to Daily Times) WELLINGTON, May 17. Many inquiries from overseas firms which desire to lease premises suitable for branch factories have been received by Wellington lana and estate agents recently, but in only a few cases has it been possible to satisfy these inquiries because of the acute shortage of accommodation of the required type. “ Generally speaking, these oversea firms are not prepared to purchase properties and build to suit their own requirements, but desire to put their capital into plant and other equipment,” one agent said. “ Some have suggested that New Zealand Investors should erect suitable buildings to meet the demand for leasehold factory space, but so far nothing has been done in that direction.”

The-e exists at present a considerable unsatisfied demand for floor space, ranging from 2000 to 10,000 square feet suitable f or and, if buildings could be made available in Wellington, Petone, or Hutt, they would be taken up immediately There is to-day very little office space of any kind available in Wellington The accommodation provided in recentlyconstructed new buildings has all been absorbed by the tenants of demolished buildings and by the big demand for space by Government departments. There is little sign ol the position being eased until substantial progress is made with the proposed block of Government buildings in the vicinity of Parliament Buildings, and that will obviously not be for some time yet. _ Inquiries also revealed that there is a good demand for modern dwelling houses provided possession can be obtained, but operations in this market are considerably curtailed by the rent restriction legislation One effect of this legislation had been to give vendors able to guarantee possession an unfair advantage over others who could not give a guarantee. It was stated that houses of which possession could be given were for that reason bringing very gopd prices but others could only be disposed of to speculators who looked upon them as an investment, and they were at the moment doing practically no business. This position adversely affected the realisation of estates consisting of house property because, if possession could not be guaranteed the vendors were forced to accept a price considerably lower than the true market value.