Property Values

Dominion, Volume 37, Issue 13, 11 October 1943, Page 4

Property Values

Sir, —The question of property values is raised in an acute form and the special figures given in August Abstract of Statistics covering seven months in each of the years 1939-1943 are in use as political capital. The Government Statistician showed that, compared with 1939, there was an increase of 11.2 per cent, in number of town transactions and one of 55. < per cent, in consideration. Rural property sales increased by 1.4 per cent, and consideration by 24.2 per cent. . Why compare with 1939? Ranging from 1939 average considerations per town property sold over equivalent seven-monthly periods were £597, £684, £692, £699 and £836. Prior to the period taken by the Government Statistician the November abstracts give seven months’ consideration for sales of town properties and. these yielded £640 in 1939-40, £644 in 1938-39, and £652 in 1937, so it will be seen that even with regard to town properties, 1939 (£597) was lower than in 1937-38 (£652). Taking pre-slump values, in 1927-28 average consideration was £694, and in 1928-29 £686. Strangely, the values principally attacked are rural. During the seven months’ periods reviewed by the Statistician average considerations for rural properties transferred from 1939 to 1943 were £1498, £1721, £1531, £1399 and £1835. Areas sold affect the figures. Seven months’ rural “considerations,” given in November 1939 abstracts, show an average of £1729, and in 193 S the figure was £lBll. Going back to pre-slump years, the average consideration on rural transfers was £1845 in 1927-28 and £I96S in 1928-29. In this connexion it is worth noting that the acre considered in the £IS3S of 1943 is • a much more highlyimproved acre than that of 1928-29.

Government valuations show rural valuations less every year by many millions, all fresh improyements being more than lost in decreasing unimproved values. Sinee 1929 capital value of counties has dropped from £347,573,101 to £335,891,519. but the unimproved value content of this has dropped, with increasing momentum, from £217,452,287 to £162,388,220, losing over £55 millions in 14 years. Apparently this is not enough, and special legislation is required to force values lower still.—l am, etc., A. E. ROBINSON. Auckland, October 8.