HOUSES AND LAND

Southland Times, Issue 19509, 8 May 1922, Page 2

HOUSES AND LAND

LAND MARKET DULL. HOUSES SLIGHTLY CHEAPER. On Saturday a Time* reporter called on a number of agents and learnt *omething about the trend of the house and land markets. The impression gathered was that, speaking generally, the land market is virtually stagnant, while, on the other hand, there is increased business passing in connection with the buying and selfing of residential properties suitable for workers’ homes. The more expensive house is not ih ao much demand although the agent reported that he had sold one at £1450 and another at £l5OO within the past two weeks. “There are hundreds of farm properties offering,” said an agent, ‘‘but. it is pretty well impossible to tell whether they are down in price or not because there is no demand worth speaking about. Before the tendency of a market can be gauged there must be a fair amount of operating and there is not that at the present time. The only demand that I have encountered is for small properties with good buildings on them, but they are not plentiful. If anything, the demand for this claw of property hae brightened during the past month. But there are no purchasers for large places.” Another agent was reported to have Bold four farms during last month and he speaks hopefully of an improved tone, but among agents in general there is a conviction that there Will not be any marked improvement until the spring and only then if there are strong indications that products will reach a level likely to entice people to the land. The inevitable loosening of the money market is also looked on as a spur to investment in land. As has been remarked, there does not seem to be a great deal of business passing in the more expensive class of residence, nor can it be said that houses in this category have dropped in price to any extent. In fact, places favourably situated in choice parts of the town, were, the reporter was informed, as firm as ever. But the cheaper house, running from £7OO to £lOOO, has dropped to some extent—from £5O to £loo—within the last few months. This drop is attributed more to the operation of the law of supply and demand than to a real decrease in value, it being held by experts in the property line that there will not be any true decrease until the coat of building is reduced. It is this that is governing the price of houses. There ha* been a fairly constant demand for residences but numbers of people undoubtedly are waiting for prices to come down. House ownere seem equally hopeful that the market will remain firm and that they will later be able to realise on their properties at the figure they have fixed, and, rather than reduce the price, some of them are now making the places available for renting purposes at fairly high figures, renr» ranging from 25/- to 35/- for fiv* and sixroomed places.