SUBURBAN LANDS.

Dominion, Volume 3, Issue 844, 16 June 1910, Page 5

SUBURBAN LANDS.

A DULL MARKET. SEQUEL TO THE BOOM.

• Interesting viows on tho past and present of the real estato market with particular reference to the boom of three or 'four years ago, were expressed by several land agents who were called upon by a Dominion reporter yesterday. They were invited to comment upon a rather striking statement which had been made the day before in tho Magistrate's Court, where a judgment debtor referring to his interest in a syndicate which was formed three or four years ago to take up an area of ground in a "handy suburb" said he' and nine others had put in ,£2OOO to purchase certain land, and the whole of them had lost their money. They could not get enough for the land now to pay the first mortgage. "In fact," said the debtor, "we simply can't sell the land at any figure." Wild-Ca; Schemes. A gentleman who is largely interested in the real estate market, when seen yesterday, said that some wild-cat schemes Vere formed three or four years ago, tho promoters getting most of tho benefit, lie mentioned an instance in which a person obtained an option over a block of land at ,£3OO an acre, and disposed of it to a syndicate for ,£IOOO an acre shortly afterwards. It was hilly land, and at about the same time level building sections close by were, sold at ,£BOO an acre. Syndicates which had taken up land near tho tramways at reasonable prices had had no cause of complaint. He thought the land referred to in the Court must have been in a comparatively inaccessible position. At tho present time not much business was doing in real estate. Buyers appeared to be looking out for bargains and thoso who had laud to sell were' holding it rather than taking prices offering. Inexperienced Investors. One leading land agent said the fact of tho matter was that people without experience and without much money to lose had taken part in syndicates, and had lost their money. The same thing occurred in all businesses from time to time, but there were a number of such cases in AVellington some time ago. Large capitalists could stand such losses, but, unfortunately, a number of people with comparatively small means had suffered. The position was quite different now. There was a great, deal of money awaiting investment, but there was not much confidence, and people were inclined to hang on to their money until they cquld see what iyas coming. Six per cent, was being paid for money, but if it came duvrn to 5 per cent, property would begin to change hands again." A Revival .Begun. The head of another firm of land agents confirmed the above views in regard to the purchase of land by some of the syndicates at excessive prices. He instanced tho case of a block of exposed and very hilly 'country, considerably beyond one of the most distant trnmway termini. He estimated its value as pastoral land at £6 an acre, and ho saw no prospect of it being used for residential purposes for many years to come, but a syndicate took it up at J228 an acre. This authority—differing from' the others who wero consulted—regarded the depression in the real estate market (which, he said, was almost a panic) as being .now practically over. He stated that there was now a keen demand, and great business was being done in building sections close to tho city. In support of this assertion, »he pointed to tho activity in building in certain suburbs.