RURAL LAND VALUES

Otago Daily Times, Issue 25306, 17 August 1943, Page 4

RURAL LAND VALUES

Sir,— History is repeating itself with regard to the country being made the whipping boy for the town, on account of the rising values of land. Money values have been in the melting pot since last war Ail that is built on values derived from animal husbandry appears to have greatly increased in price. There was much talk of high farm prices after Tast war. When such a question as land values becomes a political shuttlecock, when all arguments are from the particular to the general, when conversations commence with “ I know a farm . . . ,’ facts are mislaid. The post-war political Opposition made much of certain sales of estates at high prices.' Later, high price of- dairy produce led to speculation, and many-mortgages had to be liquidated subsequently. Later still, when 1 politicians were-looking into every cranny for the cause, of the slump—which, be it remembered, was at first to be cured by more production quotas and/then by less;prpduotion quotas—rural- land values?.-had •Jtlieif" place inf’lhe long line of* exhibits. Despite* vast increases.in animal .pppilljition Government' capital valuations -of counties in 1921 and 1924 were the same, each bring £322,000,000; valuation of boroughs rose from £179,000,000 in 1921 to £321,000,000 in 1940. As to values in recent years, in the Abstract of Statistics for June will be found particulars of land transfers for five months, in the years 1939-1943; and in the Abstract for September, 1936, there are similar particulars for five months of the years-1935 and .1936.. There were 5397 town'and suburban transfers in 1935, averaging £423 'consideration; 6897 ,in 1936, averaging-'£446; • 9623 in 1939, averaging £589: and 10,295 in 1943, averaging £823, each in a five > months’ period—roughly double as many at double th.e consideration per transaction in 1943, compared with 1935. In 1935 there were 2271 rural land transfers, averaging £1334 each: .in 1936, 2622, averaging £1354; in 1939, 1974, av raging £1461; and in 1943, 1936, averaging £1561. About 14 per cent, fewer 'ransactions in rural land took place in five months in 1943 than in five months in 1935; the value per transaction rose 17 per cent, over the eight-year period. There were frwer transactions in rural land in 1943 than in a similar period (January to May) in 1939, though there was 7 per cent, more consideration on the average. Land improvements justify higher prices, more particularly when there has also to be considered i the drop in the general purchasing power of money hat has affected prices of almost all else but rural land. The pound of 1921 bought much more than Ihe pound in 1943.—1 am, etc., A. E. Robinson,

Provincial Secretary. Auckland Farmers' Union,’ Auckland, August 12.