XN000022-1982-03-17 — Page 2

WEDNESDAY, MARCH 17, 1982

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PROPERTY REVIEW 1982

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THE RATING AND VALUATION DEPARTMENT'S 1982 PROPERTY REVIEW, WHICH WILL BE PUBLISHED FOR SALE IN MID-APRIL, CONFIRMS THE DOWNTURN OF THE PROPERTY MARKET WITH INCREASED VACANCIES IN ALL SECTORS AND A GENERAL SOFTENING OF VALUES.

COMMENTING ON THIS AT A PRESS CONFERENCE THIS AFTERNOON (WEDNESDAY), THE COMMISSIONER FOR RATING AND VALUATION, MR RAYMOND FRY, NOTED THAT THE EASING OF THE MARKET WAS GOOD NEWS FOR THOSE SEEKING ACCOMMODATION.

HE REFERRED TO THE FACT THAT DEVELOPERS AND LANDLORDS HAD HAD A VERY GOOD FOUR TO FIVE YEARS AND THAT THE BALANCE HAD NOW SWUNG

IN FAVOUR OF CONSUMERS.

THIS HAD LARGELY BEEN THE EFFECT OF MARKET FORCES PROVIDING THE NECESSARY ADJUSTMENT MECHANISM, HE SAID.

MR FRY POINTED OUT THAT THE PROCESS OF DOWNTURN HAD BEEN FAIRLY SLOW, EMPHASIZING THE UNDERLYING STRENGTH AND STABILITY OF THE MARKET DESPITE THE ADVERSE EFFECT OF CONTINUING HIGH INTEREST RATES. HE BELIEVED, IN THE FACE OF THE PRESENT HIGH VACANCY FIGURES AND THE GOOD SUPPLY OF NEW ACCOMMODATION COMING ON-STREAM OVER THE NEXT TWO TO THREE YEARS, THAT THERE WOULD BE SOME FURTHER EASING OF VALUES BEFORE THE MARKET CONSOLIDATED.

HE NOTED THAT BOTH SALE PRICES AND RENTS HAD, DUE TO EXCESSIVE SPECULATION, BEEN PUSHED TO LEVELS WHICH WERE NOT SUSTAINABLE IN THE MORE BALANCED MARKET NOW OBTAINING. WITH A MUCH WIDER CHOICE AVAILABLE TO THOSE SEEKING ACCOMMODATION, LANDLORDS WOULD DO WELL TO APPRECIATE THE VALUE OF A GOOD TENANT. AS HE PUT IT, A GOOD TENANT MAY BE AN ASSET WORTH NOURISHING.

DOMESTIC

IN REGARD TO THE DOMESTIC SECTOR, MR FRY SAID THAT SUPPLY AT NEARLY 35 000 UNITS WAS SOME 1.5 TIMES THE AVERAGE FOR THE DECADE AND WAS THE HIGHEST EVER ACHIEVED IN THE POST-WAR PERIOD. SOME 55 000 UNITS ARE FORECAST TO BE COMPLETED OVER THE TWO YEARS, 1982 AND 1983, AND A FURTHER 25 000 UNITS ARE EXPECTED IN 1984.

TOTAL DOMESTIC VACANCIES AT DECEMBER 1981 WERE CLOSE ON 30 000 UNITS, COMPARED WITH 17 000 UNITS VACANT A YEAR EARLIER. WHILE THIS RÉPRESENTS SOME 5.8 PER CENT OF THE YEAR-END STOCK SUCH A LEVEL WAS NOT ALTOGETHER UNEXPECTED GIVEN RECORD COMPLETIONS AND HIGH INTEREST RATES. THE POSITION ALSO REFLECTS THE LARGE SPECULATIVE ELEMENT INVOLVED IN DOMESTIC PROPERTY SALES OVER THE YEARS, 1979-1980, WHEN A LARGE PROPORTION OF PURCHASES WERE MADE NOT WITH A VIEW TO ESTABLISHING A HOME BUT FOR ON-SELLING AT A PROF IT.

/THE SOFTENING