REAL ESTATE MARKET

Evening Star, Issue 22458, 1 October 1936, Page 15

REAL ESTATE MARKET

BRISK DEMAND FDR BUILDING SITES INSTITUTE'S ANNUAL REPORT Owing to the unsettled state of world affairs and the change of Government within tho Dominion, the past year has been rather a difficult one for the real estate fraternity (states tho annual report of the Otago branch of the Real Estate Institute of New Zealand). Much new legislation has been passed which has a direct bearing on the property market, and investors have, therefore, shown a distinct disinclination to invest iu real estate till they saw what bearing the new legislation was going to have on the property market. However, many (properties have changed hands, and the demand for tho smaller typo of houses remains fairly steady. This is largely accounted for by tho fact .that there is a decided shortage of houses for renting and tho demand is still very much in excess of the supply. During the past few years of depression, the numbers of new houses being erected fell off very considerably, and this largely accounts for the shortage at the present time. The demand for suitable building sections anywhere handy to the city lias been very brisk, and buyers are finding that they have gradually to go further out from (own as city sections are now very scarce. Rrices have remained lairly steady, and sections at reasonable prices are soon <!is(>oscd of. The ruling rate for first mortgage money is 4] per cent., but money at this figure is obtainable 011I5' on firstclass security. As pointed out iu last year’s report, there is no finer type of security than freehold property in a good locality provided a reasonable limit is not exceeded.

The membership of the branch remains very much the same as last year, but in view of several promises, it is hoped that a marked increase will be noticeable in the coming year. As shown by the statement of receipts and payments, the closing bank balance was £2O lOs 9d, as compared with £l4 12s Id at the commencement of the year, while the excess of assets over liabilities has increased from £l4 12s Id to £25 15s .‘id. The amount received for subscriptions during the year was £SB ICs, as against £57 4s 6d last year, when, however, £8 .‘is was received for entrance ices for which no amount was payable this year. The expenses at £49 IDs 5d (including 15s Gel owing for capitation fees) show a decrease of £9 12s B<l as compared with ]9.‘is (£59 ;js Id), of which £5 5s was due to kgjtl espouses paid in 1935,

while oapi talion fees were lower by £2 2s.

At the last annual meeting of the parent body, an effort was made to introduce a universal tariff for the whole of the Dominion. A very decided stop forward was made in this direction, and it is felt that the time for its adoption is not far distant. During the year, the honour of life membership of the New Zealand Real Estate Institute was conferred on Mr L. Deans Ritchie, an honour which was richly deserved We extend to him our hearty congratulations, and trust that ho may long bo spared to enjoy this honour.

Owing to pressure of business, Mr Magnus Johnson fotnid it necessary to resign from the executive, and his resignation was accepted with much regret. Mr Johnson rendered good service to tho institute for a number of years, and the executive were very sorry to lose his services.

During tho year, an invitation was extended to the legal profession to meet the members of the institute in a friendly game of bowls. After an' enjoyable afternoon’s play, victory was gained by the institute’s representatives by a narrow margin. It is hoped that this is only the forerunner of many friendly contests of this kind. In accordance with the rules, the president and two vice-presidents retire, ns well as certain members of the executive. The president does not wish to stand for re-election, but the other officers are eligible, and amain offer themselves. fn retiring from office, the -president wishes to thank the me miners of the executive for their co-operation and assistance and for their unfailing courtesy to him at all times, Tho auditor, Mr C, Russel! also retires, and is eligible for re-election.