Press Release – Green Party
A survey showing around one in ten properties throughout New Zealand are purchased offshore highlights the fact that this practice is making the housing market harder for New Zealanders to get into, Green Party Co-leader Dr Russel Norman said today.14 March 2013
Govt must take action regarding overseas property speculators
A survey showing around one in ten properties throughout New Zealand are purchased offshore highlights the fact that this practice is making the housing market harder for New Zealanders to get into, Green Party Co-leader Dr Russel Norman said today.
The March BNZ-REINZ Residential Market Survey shows around 9% of house sales in New Zealand went to offshore buyers, while in Auckland this figure was 11%.
“This survey is likely to understate the true level of overseas purchases of New Zealand houses,” said Dr Norman.
“Our weak overseas investment laws mean New Zealand is a good place to pick up a bargain for an overseas property speculator.
“The fact that around one in every ten homes is being bought offshore is of no concern to the BNZ or the Real Estate Institute of New Zealand.
“Overseas investors buying up houses in New Zealand is great news for the banks and real estate agents making money from these deals, but terrible for New Zealand house buyers in an already tight market.
“The BNZ and REINZ are also keen to play down the fact that more than 5% of houses purchased recently will not even be lived in by their owners,” said Dr Norman.
“The fact that New Zealand’s already tight housing market is becoming a magnet for overseas investors should be of great concern to any New Zealand government.
“Sadly, given past statements on overseas investment, the Key Government have no intention of dealing with this issue,” said Dr Norman.
“This is unfortunate as continued speculation in the New Zealand property market by offshore buyers will help fuel another destructive housing bubble.
“The Key Government need to look to other jurisdictions, such as Hong Kong, that realise the danger of offshore buyers making large inroads into an already tight market.
“Hong Kong has imposed a 15 per cent emergency tax on foreign buyers of residential property.
“Hong Kong was forced to take this action after investors from Mainland China drove up prices creating a housing bubble, Dr Norman said.
Link to the BNZ REINZ survey: