Data confirms foreign buyer ban shouldn’t go ahead
Here is a very interesting article regarding the true impact of overseas investors in New Zealand. From the settlements we have completed in Queenstown area, the overseas buyers have decreased significantly every year from 2015 (18%) to 2018 (4%) due to LVR restrictions, AML (Anti Money Laundering Laws), and tightening of banks policies as a consequence. We have seen an increase in line with this data to 9.30% for April to June 2018. That is due to the fact overseas buyers are rushing to get in before any proposed changes are put in place.
“The figures released today by Statistics NZ show that for the March quarter only 3.3% of all of New Zealand’s property transfers were to people who didn’t hold New Zealand citizenships or resident visas.
“These figures are very close to the numbers that REINZ released at the back-end of 2017 which indicated that only 3.8% of sales were to offshore buyers. In our view, the figures from Statistics NZ confirm that it’s not worth going ahead with a blanket ban on foreign buyers across New Zealand.
The only areas in New Zealand where there is a significant proportion of sales to made to people who didn’t hold New Zealand citizenships or resident visas are Auckland and Queenstown Lakes with 7.3% and 9.7% of sales respectively"
Read the full article from Scoop here.