12 July 2007

They're Even Buying In Mataura

Foreign buyers are continuing to snap up residential housing throughout New Zealand, and despite the Finance Minister’s repeated assertions, they are having a major impact in pricing Kiwis out of the market, says New Zealand First housing spokesperson Pita Paraone.

“A number of reports recently have highlighted just how many houses are being bought by foreigners,” said Mr Paraone.

“Of note was a report yesterday that the cheapest house for sale in the country, a two bedroom handyman’s dream in Mataura near Gore, was purchased by an overseas buyer just two days after being listed. If foreigners are prepared to buy our cheapest properties, it makes a mockery of the Government’s assertions that they have no effect on our market.

“It has also been reported that a large number of Marlborough Sounds properties are deliberately being sized under the 2000 square metre threshold in order to allow non-New Zealand buyers to sidestep scrutiny by the Overseas Investment Office.

“Currently, there are no restrictions on foreigners purchasing residential property. As long as the size of a property is less than the threshold, there is nothing to restrict sales to the highest overseas bidder.

“To our detriment, the Government is dismissing this as a non-issue. When questioned in the House, Michael Cullen practically laughed off suggestions that foreigners have any effect on our housing market, but then admitted that the Government has little to no data to back up his assertions.

“Owning a house is an essential part of the Kiwi dream. Unless the Government recognises that deep-pocketed foreigners are contributing to increasing house prices, home ownership will remain just a dream for many New Zealanders,” said Mr Paraone.

ENDS

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