The government's directive to the Overseas Investment Office to raise the bar in overseas applications to buy sensitive New Zealand land has scared away tens of millions of dollars in investments in rural property and will hurt farm values, real estate firms say. Jonathan Underhill from BusinessDesk reports
The Government is set to introduce legislation to ban foreign buyers from buying existing homes and to force them to sell any new homes or apartments that they build.
For the convenience of email subscribers, here's my full Herald on Sunday column on why Treasury's high net migration scenario in the Budget could change the economic and political landscape. It could push mortgage rates up to 9% and make Winston Peters the kingmaker on September 20.
For the convenience of email subscribers, here's my full opinion piece on the lessons we should learn from warnings about our over-valued property market and any risk to our banking system. In particular, I look at the issue of moral hazard and the need for a deposit insurance scheme.
For the convenience of email subscribers, here's my opinion piece arguing the commentary published in Forbes.com was over-blown in saying New Zealand's property bubble would burst and cause an 'economic disaster'.
For the convenience of subscribers, here's my full weekend column on why a trickle of housing investment from China should be turned into a flood that builds thousands of affordable homes in central Auckland.
The Government appears to have softened its opposition to collecting more data on the residency of house buyers, but has stopped short of agreeing to either an inquiry or restrictions on ownership.
Finance Minister Bill English used his pre-budget speech on Wednesday to highlight the dangers of house price inflation to the economy and the Government's drive to increase housing supply in Auckland. He also hinted that the May 15 Budget may include new measures to increase housing supply.
BNZ Chief Economist Tony Alexander has led the debate around non-resident buying of homes in Auckland with his BNZ-REINZ survey of real estate agents' views and his call for Australian-style restrictions. The issue is shaping up as a big one for the September 20 election and now Alexander has raised the prospect of a greater surge of investment from China that could leave houses in Auckland empty. He suggested even Australian-style restrictions may not be enough to dampen house price growth.
Debate ahead of the September 20 election is set to be focused on housing affordability and whether to restrict non-residents from buying houses. Politicians from the major parties have challenged each other to debate these topics and the common refrain yesterday was: 'Bring it on.'