REINZ is disappointed foreign buyer ban passes third reading

Bindi Norwell, Chief Executive at the Real Estate Institute of New Zealand (REINZ) says: “We are disappointed that the Overseas Investment Amendment Bill has passed its third reading today; particularly in light of the fact that the latest Statistics New Zealand figures show that the percentage of foreign buyers fell from 3.3% for the March 18 quarter down to 2.8% for the June 18 quarter. Additionally, the two regions of concern – Auckland and Queenstown Lakes – also saw falls from 7.3% to 6.5% and 9.7% to 5.2% respectively.

“We have been very vocal over the past year that we don’t believe that banning foreign buyers from purchasing property in New Zealand is going to have any impact on house prices nor will it help young people into their first homes.

“The real estate industry has stood alongside telecommunications companies, district councils, financial services providers, law firms and the retirement industry in this view. We have been very clear in our evidence, both in our written submission and at the Select Committee hearing, that foreign buyers only make up a very small portion of market. Banning some 3% of the market from purchasing homes in New Zealand is not going to have a significant impact on house prices. Increasing the level of supply, speeding up the consenting process, creating consistency at Councils around New Zealand and reducing LVR restrictions for first time buyers are all more appropriate measures that will help with affordability ahead of banning offshore investors.”

ENDS

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