NZ to Make Properties More Affordable
New Zealand is facing a housing affordability crisis which has left home ownership out of reach for many Kiwis. NZ to Make Properties More Affordable. To make properties more affordable for its own citizens, the bill to ban non-resident foreigners from buying New Zealand properties was passed by New Zealand’s Parliament on 15 Aug.
NZ to Make Properties More Affordable. The Overseas Investment Amendment Bill will prevent overseas investors from purchasing existing properties in New Zealand, but they will still be able to buy into new apartment complexes in new large developments and certain other parts of the housing market.
However, Australians and Singaporeans are exempted from the ban altogether because of free-trade agreements between NZ and the two countries. Also, foreigners with residency status in New Zealand are not affected by the ban.
The ban follows fears that foreign buyers were putting too much pressure on NZ’s infrastructure and housing prices. A survey last year shows that 54 percent of people in Auckland and Hamilton blame Asians for the rising housing prices in NZ. And among the Asians, mainland Chinese investors are the biggest and most active property buyers. Average prices in New Zealand have risen more than 60% in the past 10 years, while in Auckland, they have almost doubled.
New Zealand’s Trade and Economic Development Minister David Parker said that the government believes that New Zealanders should not be outbid by wealthier foreign buyers, Whether it’s a beautiful lakeside or ocean-front estate, or a modest suburban house, this law ensures that the market for their homes is set in New Zealand, not on the international market. Read more