In October last year the Government banned the sale of homes to foreign buyers.
In the first few months, the sale of New Zealand properties to foreign owners fell through the floor, down 81 per cent in the March 2019 quarter compared to the year before.
The latest figures, released just last week, show the downward trend is continuing. In fact, they show that more foreigners are selling properties in New Zealand than buying.
In the three months to June, foreigners bought 183 properties compared to 933 in the same quarter last year, down 84 per cent. This was 0.5 per cent of all purchases, down from 2.8 per cent a year ago. During the same period they sold 327 properties.
This represents a sharp turnaround from the situation in the second quarter of last year, when 1116 homes were purchased by overseas buyers and 492 were sold by overseas owners.
Economists agree that the new rules are having a significant impact, especially in Auckland, where first-home buyers were pretty much shut out of the market. The legislation does strike a balance though, by allowing limited foreign support of new building stock in areas where it is needed.
There is still more work to be done, including finding ways to determine how many foreign buyers are ‘hiding’ purchases in companies and trusts. Keeping New Zealand land, housing, and strategic assets in Kiwi hands remains a core New Zealand First value.
A generation of New Zealanders had given up hope of ever owning their own home but the ban on foreign buyers has restored opportunity for many. We are proud to be driving change which gives hard-working New Zealanders a more secure future.