New measures have been introduced to cool the market in New Zealand.
As Vietnam mulls over increasing taxes for those with second homes but simultaneously attempts to attract more foreign investors, New Zealand has taken a very firm stance on overseas purchasers to try and cool the market.
The country’s newly appointed Prime Minister, Jacinda Ardern, has announced that foreigner purchases will no longer be permitted. Ardern made home ownership a priority as part of her election campaign since it is at its lowest level since 1951. The only country to be exempt from this will be Australia. A measure to be introduced in 2018. The aim to make property affordable for its citizens as foreigner speculators are cited to increase property prices.
Other countries have introduced similar measures to keep property affordable for the domestic market. This includes Singapore whose market is slowly improving after a continuous decline in values. Hong Kong has followed suit thanks to its sky high prices. Even the UK have introduced measures to reign in foreign investment. This includes ensuring that any project is marketed in the UK ahead of being marketed overseas.
“Foreign speculators will no longer be able to buy houses in New Zealand from early next year,” commented Prime Minister Jacinda Ardern. “We are determined to make it easier for Kiwis to buy their first home, so we are stopping foreign speculators buying houses and driving up prices. Kiwis should not be outbid like this”.
The move which was announced at a press conference in the country’s capital Wellington is expected to be welcome news for many residents. The average house price in Auckland has racked up significantly of late. Currently at USD 685,000. According to research from Demographia Auckland is the fourth ‘least affordable housing market’ behind Hong Kong, Sydney and Vancouver. Many blame the influx of Chinese money to these cities for achieving this status.
