RENTS AND VALUES IN THE CITY

Dominion, Volume 7, Issue 2265, 26 September 1914, Page 9

RENTS AND VALUES IN THE CITY

ASSESSMENT COURT VALUATIONS DISPUTED HOBSON STREET AS A PLACE OF RESIDENCE _ The Assessment Court continued its sittings yesterday to hoar objections to the valuations mado by the State Valuation Department of certain City properties. The opening cases brought forth some interesting, testimony Aβ to Hobson Street holdings. The Court consisted of Mr. W. G. Riddell, S.M. (president), Mr. H. E. Leighton (assessor for the State), and Mr. T. Dwan (assessor for the objectors). Mr. 'A. do B. Brandon appeared as counsel for the objectors, and Mr. M. Myers for the Valuation Department. Particulars of the valuations of the. Hobson Street properties concerned in the objections, prefaced by the names of the objectors, are:- 1 - ' Mr. A. de B. Brandon—l9o6 valuation : Capital value £2380, unimproved value £1330, and improvements £1000; present valuations, £2510, £1685, and £825 respectively. . Mr. A. de B. Brandon—l9o6 valuation: £1940, £1440, and £500; present valuation, £2095, £1780, and £316. Miss Joseph—l9o6 valuation: £3725, £1725, and £2000; present valuation, £2930,- £1695, and £1235. It was explained that six feet had been taken, off this property for the purposes of a right-of-way, thus reducing the section from 69 x 54 to 63 x 54 feet: . Mr. A. H. Miles—l9o6 valuation: £5300, £2700, and £2600; present valuation, ; £6025, £3765, and £2260. Hobson Street Values. Mr. Brandon said that ho. proposed to call general evidence to show that Hobson Street, was a purely residential thoroughfare, and that there had been no sales since the last valuation to justify the increases in the values now put upon the properties, and further, :that,the tendency was rather; toward de--crease's, because the locality was subject to various, detriments which lessened the of the street as a desirable place of residence for those, wlip could afford-to pay comparatively high prices.' '.'.'■■ ■'•■/.■ /'. . Charles James Stanton : Harcourt, land agent, said that at one time Hobeon Street wae looked upon as" a very nice residential street, it-was regardod as a privilege to live there, and very high prices were paid for tho privilege. Since then much of the landalong the street had gone into, the hands /of a number of small owners, a number of boardinghouses had oropped up in the street, and the Thorndon Railway. Station was a very serious cause of objection. In 1903 the Pharazyn -Estate was sold at 25 per foot, later Mr. Lan Duncan's estate for £29 per foot, and the last sale in the street this year was the Pinson estate, which- went at the rate of £8 per foot for a property 100 feet by 100 feet. _ ■ • Mr. Myers: That is a gully. ■- , . • WitnessV Not all of it. , / Continuing, the witness said that Dr. Newman's property had been for sale for 18 months for £2760. The section was 40 feet by 100 feet, the house was built seven years ago, and was valued at £1300. For nine months this house had been offered for letting at £4 per week (£3 10s. would>have been taken), and only one offer had been received, and that was of £3. Tho average rental obtained fo,r a ten-roomed house in (Wellington North was £2 Is. 4d. per week, or £107 12s. 9d. per year, gross. 'After deducting rates, etc., there would Kβ a balance pfi-£14745. "Id.- interest: on the land.' .' v' v ' ■■"' ~'' : Objeotlons Fall. Mr. Brandon: Do you think Hobson Street is very far away from'the average'now? ■•■ • • '■ • ■ ; Witness: It is coming down to it. ' Mr. Myers:' Do you wish the Court ■to believe that there is no market for land in Hobson Street? • Witness: I do. Since when?—" The last five or six years." , ■ . / ■ When do you consider the- values of land in Hobson Street; began to go down?—" The top. value was in. about 1905." ■ ' .- : Have they gone down , since then?— "No, they have gone up. higher, "but have come back again." -'■.'■.',' 1 What do you .mean by saying'they have gone back since?—"Tlioy are unEaleable now." In what street do you consider'land i-j most desirable for residential purposes ?—"ln Wellington Terrace, or in the Kelburn locality." • AVhy Wellington /Terrace ?—"On account of the depth and the configuration'of the country." ■ Mr. Myers submitted that the .objectors had not discharged.tho onus upon them to. show that the Departmental valuation was incorrect; and after a brief- consultation with the assessors the president announced that the Court considered that the .evidence was! not sufficient to. warrant an interference with the valuation made by the State Valuer. The valuations would be sustained. : ' Three objections to.the valuations of . properties in Thorndon Quay were made by Mrs. S. Stevenson, and after.hearing evidence, the Court reduced the capital value of one section from £1520 to £1450, of another from £1100 to £1050, and of the third from £1085 to £1035. . , ■~,.. Rents in Business Area. -The hearing of objections against the valuations of land in the business area of the City were then proceeded with. Considerable evidence in these cases had been given last week.' .. . . John Guthrie Wood Aitke'n, who has been in business in Wellington for many years, and has been.Mayor'of the City, gave it as his experience that City values had fallen since 1906. His firm owned, a building at the corner of- Brandon Street and Customhouse Quay which they used to get £350.' yearly rental for. In 1908' when the bottom fell out of the American money'market they had to reduce the rent by £100, and; they had not been able to: get more fince. His opinion was that tho general standard of rente in the business area was lower than.in. 1906. The cost of building had increased, but interest had not varied very much. , _ R. M; Simpson, 'manager of the Weir linptton Investment Association; J. M. Richardson. James Russell* J. S. Swan, architect, E: K. ■ Kirkcaldie, solicitor, A. Lonemore, land agent, and .Tames Ames (City Valuer), also gave evidence, and shortly after 5 p.m. the Court adjourned till 10 a.m. to-day.