No Boom When Property Controls Lifted

Chronicle (Levin), 11 October 1949, Page 3

No Boom When Property Controls Lifted

AUCKLAND, Oct. 10. Tke expected rise in prices did not follow the New South Wales Government ;s removal of controls from property saies, in September. This is stated in a letter by the secretary of the Real Estate Institute of New South Wales, Mr W. E. Greenwood. Copies of the letter are being sent to all members of Parliament by the Eeal Estate Institute of New Zealand in an effort to have similar controls lifted in New. Zealand. • Although four .weeks have elapsed since the State Government removed controls from property saies, the market remains in a comatose condition from which only the slightest sign of a revival is apparent at the moment, states thp letter. The institute -was prepared for a brief upward spiral of prices which it was anticipated would quickly retUrn to something approaching normal, namely, a figure which, all things being equal, would reflect an advance on 1939 prices equivaient to that which has taken place with all other commodities. When the known available volume of property came on the market, this upward spiral did not in fact take place. The market beeaine dead as sellers asked prices in line with those reputed to have pertained in .the sphere of private negotiation during the period of control, states the letter, Buyers, revelling in the opportunity of selection for the first time in years, became most selective and refused to touch anything but the choieest atid that at a compromise with the seiler. Strangest of all was the fact that vacant land for home and industriai sites, which had been selling freeiy at fairly high prices up to September 1, also became unsaleable and today is being passed in at auetion saies with monotonous regularity.