NZ Labour plans curb on foreign home buyers
"The next Labour government will introduce restrictions so that non-residents will not be allowed to buy any existing house, flat or apartment," Labour leader David Shearer said.
The policy will apply to buyers from every country in the world other than Australia, Mr Shearer said.
The policy aims to reduce demand in the housing market from foreign speculators.
Non-residents will be able to build new homes.
Mr Shearer said the rule would not apply to Australian buyers because if New Zealand stopped Australians buying homes "we would risk the possibility they would shut us out as well".
Inland Revenue Department records showed that more than 11,000 overseas investors owned New Zealand properties they didn't live in, Mr Shearer said.
"An estimated 2600 homes were bought last year by offshore property speculators who had no intention of living here. That's a big chunk, given that just 4700 new homes were built in Auckland last year," he said.
Frequently Asked Questions about this Article…
The Labour Party plans to restrict foreign ownership of existing residential properties so non-residents would not be allowed to buy any existing house, flat or apartment in New Zealand, a policy announced by Labour leader David Shearer.
Yes. The policy explicitly exempts Australian buyers from the restrictions — Mr Shearer said Australia would be excluded because New Zealand risks reciprocal measures if it shut Australians out.
Yes. The Labour proposal would stop non-residents buying existing homes but would still allow non-residents to build new homes in New Zealand.
According to Labour, the restrictions aim to reduce demand in the housing market from foreign property speculators, which they see as contributing to pressure on the residential market.
Inland Revenue Department records cited by Labour show that more than 11,000 overseas investors owned New Zealand properties they did not live in.
Labour estimated that about 2,600 homes were bought last year by offshore property speculators who had no intention of living in New Zealand.
Labour noted that the estimated 2,600 offshore purchases last year are significant when compared with the roughly 4,700 new homes that were built in Auckland over the same period.
Labour says the restrictions would be introduced by the next Labour government, meaning they would take effect if and when Labour wins office and enacts the policy.
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