WELLINGTON NEWS

Hokitika Guardian, 21 October 1930, Page 6

WELLINGTON NEWS

LAND VALUES

(S pec ia 1 Co r respond e 11 1)

WELLINGTON, October 2

That land values, both in city and country have eased is generally known and admitted. Because of this decline the number of transactions in realestate has contracted. This is due u the fact that there is a lack of confidence in current values, and there is nothing to check buying more than the belief that values will go lower. When confidence is restored business will revert to normal.

The figures given in the Monthly Abstract issued by the Statistical Department shows the transactions 'u rather transfers of real estate in the month of August and for the five months ending with August. During the month the number of transfers of town and suburban properties was 1696, as compared with 2252 in August 1929, a decrease of 556, and equal to nearly 25 per cent.

The value of the properties transferred during the month wa* ( £934,888, giving an average per transaction of £557 against an aggregate value of £1,401,475 or an average per transfer of over £622, showing a decline this year of £65, or over 10 per cent per transaction.

For the five months from April 1 to August 31 there were 8494 transactions in town and suburban real estate, against 10,516 in the corresponding five months of 1929, a shrinkage of 2022, or nearly 20 per cent; the consideration paid on the transfers for the five months of this year was £5,032,712, equal to £592 per transfer, which compares with a consideration of £7,129,354, or an average cf £678 per transfer last year, a difference of £B6 and equal to about 12£• per cent. With the continuous fall in the values of our primary products which began last year, it is not surprising that country properties *have been affected. The official figures show that in August last year there were 723 transfers of country properties, as compared with 829 in August last year, a decrease of 106; the consideration was £1,170,388, against £1,565,640 in' August of last year, and the average per transfer was £1619 against £IBB9, a decrease of £279, or not quite 15 per cent.

For the five months to the end if August last the transfers numbered 3543 against 3844 in the corresponding five fnontlis of 1929, a decrease of 511 and the consideration was £6,380,189 as compared with £7,412,020, and the average per transfer works out at £lBOl, against £1929, a decrease ot £127, equifl to nearly 7 per cent. Through the drop in produce prices, values of broad acres declined automatically but the land tax and rates will continue to be assessed on the fictitious values «|f a year or two years ago. SHAKE SPECULATION. % During the first few days of last week the Stock. Exchanges of the Dominion were exceptionally active, and brokers did the proverbial roaring trade and prices of shares showed a decided upward tendency. The buying was restricted to certain classes of shares, but mainly bank shares. Only a few industrial concerns received attention. It is difficult to account for this sudden revival, for a few days earlier the market was in the holdrums.

As far as can be seen the movement started in Sydney arid spread to other centres. The ostensible reason for the movement was the announcement that the Federal Parliament would meet at the end of the month to pass economy measures to enable the Government to save about £4,000.000. This announcement was seized upon to create a “bull” market, but it is very doubtful if it will hold. The “bears” bad charge of the market up to the time of the announcement, and that they have not made efforts to regain control is because they are uncertain as to the result of the election in New South Wales on Saturday. A bull in a- market is one who buys for the rise, ,aiid a “bear” is one who sells for the fall,- and both 'are speculators or gamblers. But the bears of yesterday may be the bulls of tomorrow. for the bears may be landed with what they wish to unload and so turn bulls. The Lang or Labour Party in N.S.W. have been promising workers full employment at award wages, but refuse to indicate where the money is to come from. Lang says he will be able to find the money as lie did when he was Premier previously. The Labour Party may win the election, for the platform must be very attractive to those out of work. If Lang again becomes Premier be will not lie able to borrow, so lie may resort to a capital levy, or be may mobilise capital. Tn the event of the Labour Party gaining a victory there is bound to be a flight of capital from N.S.W. and a bad smash in share' values. It is difficult to say what is going to happen and whether the bulls or bears will win.