Foreigners are prohibited to buy existing homes in New Zealand from 2018 after the bill has overcome its first hurdle in the country’s parliament. The ban is part of the measures that the government is taking in order to improve the accessibility of housing for the local population.
“This law recognizes and confirms that buyers from abroad who do not intend to live in the country have no right to buy houses. Our goal is to ensure that the New Zealand property market is dictated by the citizens of New Zealand”, said the country’s Minister of Economic Development and Trade, David Parker.
The land for housing is already included in the category of “sensitive assets” in the Foreign Investment Act. The normative act provides only citizens and people with a Permanent Residence Permit in New Zealand and Australia to buy existing homes without passing a check from the Foreign Investment Office.
The government continues to welcome foreign investments that bring benefits to New Zealand, revealed David Parker. He says his country wants to encourage foreign investment that contributes to the economy, but investing in existing homes by people who do not intend to live in the country does not achieve this goal unless it is a new building where the rest homes are being put up for sale.
According to Parker, this change will not have a major impact on the market in the near future, but could put pressure on prices at a time when foreign buyers’ interest in the country has increased strongly again.
The law is expected to be adopted in early 2018.