The Gisborne Times PUBLISHED EVERY MORNING. GISBORNE, AUGUST 4, 1902. LAND VALUES.

Gisborne Times, Volume VIII, Issue 493, 4 August 1902, Page 2

The Gisborne Times PUBLISHED EVERY MORNING. GISBORNE, AUGUST 4, 1902. LAND VALUES.

“ Tut: result of this sale will very largely determine the capital valuo of land in tins streot,” remarked Mr A. T\ Kennedy, as 110 submitted the Childers road sections by auction on Saturday last, and with tho experience and the effect of tho sale of Euro’s Economic corner in Gladstone road fresh in their minds, those present at Saturday’s auction were inclined to think that the Government Valuer would also take the view that Mr Kennedy did. But tho question we should like to ask tho Government Assessor is this, Who is to valuo the borough—tho Government Valuator or the general public ? Last month, Mr Simson valued the quarteracre jjfronting the Poverty Bay Club, and assessed it at JE4OO. Objection was taken to that valuation by tho owners of the property, and in order to moot them tho assessment was reduced to £350. A few weeks later the section is submitted by auction, and realises 42950. Should not the question of the suitability of the section for business purposes, and the fact that it is adjacent to the wharf, have been considered by the Government Valuor before ho reduced it from 42400 to 42350. The section, like many other ‘own properties owned hy absentees, has been allowed to escape almost free of rates and taxes, whilst tho long-suffering tradespeople, none of whom are making fortunes, have been rated up to the full extent on their properties in tho maiu streot. Why should the owner of a thousand pound property in Gladstone road pay two and three times the amount in rates that a person does who owns a section of the same valuo in Childers road. Whilst taking exception to the low assessment placed upon this particular section, we do not wish it to be understood that we consider the capital value to bo anything like tho amount paid for tho property on Saturday last. There has been a tondoncy in Gisborne during the last few months to boom the town, and wo should bo lacking in our duty to the public if wo did not .point out that there is such a thing as going to extremes. The district is one of the best in the colony and its future is assured, but wo desire to see steady progress made, with no reactions such as are likely to follow if we lose our heads and make a boom. For instance, in tho case of one property in Childers Road, leased five years ago at £ls por annnul, there is a clauso which provides for a readjustment of the rent at the expiration of tho first seven years to six per cent, per annum on the capital value. The capital value to-day, if we take Saturday’s sale as a criterion, is nearly £IOOO, and this means that the lessee will have to pay TOO por year, which we contends more than his business can reasonably be expected to provide in the way of a ground rent. Will any person say that Gisborne is four times moro valuablo today than it was'fivo years ago? The valuations, as a whole, do not show that it is twice as wealthy now as then, Of course there is this in it, that if wo can show tho capital valuo of tho Borough to bo a million pounds sterling, instead of five hundred thousand, we shall tho moro easily obtain our loan on the London market. Wo do not altogether agree with Mr Kennedy that the sale on Saturday will determine the valuo of land in that particular street. In the first placo, we assume the sections were not purchased by persons who intend to build, but rathor for tho purposes of speculation. Thero were two or three persons who required sites for business premises, but could not soo their way to exceed the first bid offored. Tho Government undertake to lend two-thirds of the capital value of a property, but who would say that they will be justified in advancing two-thirds of the amount at which the sections sold on Saturday, and which will become the Government value next year. Would any banking institution in Gisborne lend two-thirds based on Saturday’s prices ? It is pleasing to note the confidence that tho people of the town have in it, and we have no doubt that in the near future, when wo have secured our drainage and water schemes, that the hopes of tho most sanguine will be realised ; but in the meantime it would be well to have steady, if slow, progress, rather than tho creation of a feeling of unrest by overvaluation that will lead to such routs as will seriously harass business people, who have already enough burdons to bear.