LAND SALES ACT

Dominion, Volume 37, Issue 10, 7 October 1943, Page 6

LAND SALES ACT

Effect On Real Estate

Market

PURCHASES BY TENANTS

“The ultimate effect of the Act will be stabilization of prices, less sales of properties occupied by vendors, but perhaps an increase of sales of properties occupied by tenants,” said Mr. R. A Large, president of the Wellington Real Estate Institute, in a statement issued yesterday on the effect on the real estate market of the passing of the Servicemen’s Settlement and Land Sales Act. Mr. Large said that a large number of properties in the hands of the trustee organizations had been offered for sale by auction, and with an easing of reserves some sales had been made. A number of additional privatelyowned properties had been placed in agents’ hands for disposal, and a moderate number of sales had been made.

’ “More buyers have, been operating, first, to take advantage of any reduced prices, and 1 , secondly, they realize that, till committees give some indication as to the basis on which values are to lie fixed, and it is seen how the machinery is working, vendors will be very shy of placing properties on the market,” he continued.

“The speculator as a buyer has disappeared, but is replaced to some extent by investors who are taking advantage of lower prices. There is a great diversity of opinion as to how best the values of urban properties can be arrived at in such a way as to give a fair deal to all parties, and it is of such importance that it had 1 been hoped that a conference would have been arranged with the department concerned and the valuers and the real estate Institutes. Operational Effects. ’ “The effect of the Aet after it comes into force will be to curb vendors till the Government decides on its method of arriving nt the sale price of urban lands and till the working of the Act is fully understood. x “Buyers will suffer in this respect, as there will be very few properties offering, and this may be the position for several months. The effect on the sales of commercial buildings will not be felt to the same extent as on private homes, as this typp of property has not varied jn value for some years. “Auction sales will be at a standstill till satisfactory machinery clauses in the Act are introduced. The sales of hotels and businesses will not come within the scope of the Act unless the freehold or a lease, of over three years is involved. “We trust that there will be very little delay with the Land Sales Committee and the Land Sales Court once the machinery gets into smooth operation. This will, of course, take a little time. There may be increased difficulty in arranging dates of possession. These are matters,/ however, which will in time right themselves, but some delay will be unavoidable. “Many tenants, though on low rentals, will, I feel certain, be willing to buy the property they are occupying, knowing that' they can do so at prices which are not inflated; and trustees, beneficiaries, and owners would willingly dispose of these places and get rid of the .continual worry of upkeep, etc. “In the long run such an outcome of the Act is all for the good of the Dominion, as these new owners will at once sot to work to repair and redecorate- their homes, and so the general surroundings will be improved.”