SERIOUS POSITION

Timaru Herald, Volume CL, Issue 22133, 29 November 1941, Page 8

SERIOUS POSITION

Housing In Wellington

Big Proportion Living In Flats ( WELLINGTON, Nov. 26. “We are not facing a first-class housing crisis. We are past that stage, and for this city it is going to be a tragedy of some magnitude. It is very worrying, disconcerting and distracting, and I do not see any prospect of relief at present,” said a leading Wellington land agent when surveying the property market and the conditions ruling for housing accommodation in the city.

Another opinion expressed was that speculators in residential property were more active now than had ever been known before and some were making tidy profits on their dealings. It was said that the erection of Government houses was not keeping step with the demand, that there were more than 8000 prospective tenants of these on the waiting list alone, and that in any event, soldiers returning from active service overseas would have first call on these dwellings. Alarm was voiced at the proportion of Wellington’s growing population which w.is compelled to live In flats, and the conditions which were being created by this problem. It was considered that because of the housing situation generally, Wellington was heading for a grave governmental and municipal problqn. Avalanche of Buyers “Through all the years I have been in business here I can conscientiously say we have never had such an avalanche of buyers," said one agent. “It appears that almost every second married family in Wellington is househunting. The demand far exceeds the supply and, with practically every suitable house section in Wellington and its environs built on, I regret to say that the future for home-seekers does not look too bright. Taking a line on the Hutt Valley, the Government has secured practically all the available building sections, making it extremely difficult to acquire by private treaty suitable land for house building. We have only a handful of sections available in the Lower Hutt and city areas. In Wellington and its suburban areas the scarcity of vacant sections is acute. Local builders are at their wits’ end to obtain them. This, with the cost of materials and labour difficulties, is creating a grave position. “The cost of building a house to-day is enormous—the highest in the history of Wellington—and of recent date new five-roomed bungalows have sold up to and above £2OOO. Recently a new bungalow of five rooms, with kitchenette and garage, sold for £2250 In Khandallah. Modern bungalows of five rooms, with kitchenette, sell readily at £1950, and average bungalows, ten to fifteen years old, in outlying suburbs, have been selling at prices from £1650 to £2OOO. Sales are readily effected where house properties are reasonably suitable to the requirements of purchasers. “There is a grave shortage of houses of every type and age,” it was said. “During the last six years many thousands of public servants have been moved at short notice to Wellincton, and till they have disposed of properties in other towns, they have not been in a position to repurchase. There is a continual stream of inquiries from buyers and tenants. Prices have been firming, and will continue to firm. Most sellers want cash over mortgages, but in a few cases easy terms have been arranged. There appears to be plenty of money about, and buyers in some cases have even paid off existing mortgages. It is no trouble to arrange a first mortgage within a few hours, as investors' agents and groups are continually advising that they have ample funds for investment in house properties. /

Many Houses Uncompleted It wqs said that the Government housing scheme had virtually first call on materials and men, and this had practically obliterated private house builders. The cost of the erection of the State houses was high, and it was quite common to find that a decent house could not be built for less than 35/- a square foot. People with an independent spirit wanted to buy houses, and not rent them. For the average run of people it was almost im - possible to get State houses, many jf which were uncompleted because of lack of materials and tradesmen. When the Government housing scheme first got under way private enterprise was constructing houses to order, but this had almost ceased, and it was doubted if there were as many as fifteen houses at present being built for sale in Wellington or Lower Hutt.