DEMAND FOR LAND.

Taranaki Daily News, 5 July 1922, Page 4

DEMAND FOR LAND.

SLIGHTLY BETTER TONE. NO SIGNS OF BOOM. The fact that this as the time of the year when dairy farms usually change hands, led a Daily News representative to make a few inquiries yesterday from New Plymouth land agents as to the state of the property market at the .present time. Reports from Wellington, Manawatu and Wellington give currency to the fact that in those districts a mild land boom was being experienced. When this was referred to one New Plymouth, land agent he characterised it as “newspaper buoyancy.” As • far as Taranaki was concerned, he said, there was a slightly better tone in the demand for small farm properties, but not sufficient tu warrant a land boom being heralded. Regarding the financial position, asilt appeared from his point of view, he'said that, all things considered, the margin being asked on prewar values was not remarkably great. Security at present was being offered at 6to 7 per cent. The fact that 5 per cent, was the rate in a few cases, he explained, was due to the fact that some were willing to accept this rate rather than go back on the farms, and was no criterion of the ruling rate. He had found in the course of his business that there was at present a greater demand than previously for straight-out leases. Though he hoped there was a better time coming, he could see no real signs of it yet. House properties in town, he said, were fairly difficult to dispose of-

Another land man interviewed had much the same story to tell. There was, he admitted, a decidedly better tone as far as land was concerned, but buyers were shier. In the boom time the seller generally obtained the price he asked, but now buyers were going into figures themselves. When a dairy farm was placed before them they invariably asked as to its carrying capacity, and from this worked out how much would be derived from an average herd producing from about 200 to 250 lbs. of butter-fat a year at, say, 1/6 a lb. butter-fat. If the farm did not look a payable .proposition at the price asked they would probably negotiate to get it reduced to about the price they were prepared to give; if satisfactory arrangements between buyer and seller could not be made, then the deal was off. Again, what were known as semiretired farmers living in town, who in ordinary circumstances might be expected to -buy farms again, were not operating at present, as they were not sure whether their former farms might not fall back on their hands. As far as farm properties in Taranaki were concerned, whilst there was a decided improvement in the position obtaining two months ago, there were no signs of a land boom. Business in house properties in town, this agent found, was brisker at present, especially where a man was prepared to find a small deposit. He thought the time was soon coming when house prices would be considerably easier.