New Zealand bars foreigners buying homes: Chinese blocked but Singaporeans are still allowed
Skyrocketing home prices in Auckland have been of particular concern to New Zealanders, although that market has cooled over the past year
New Zealand has banned most foreigners from buying homes as it tries to tackle runaway housing prices.
Previously the housing market was open to investors worldwide, but the government on Wednesday passed legislation that allows only New Zealand residents to buy homes.
In recent years, there have been many anecdotal stories of wealthy foreigners from Silicon Valley and beyond buying ranches in picturesque rural New Zealand as a “bolt hole” or escape option from a turbulent world.
There have also been stories of wealthy Chinese buyers outbidding New Zealanders on suburban homes in the main city of Auckland.
Statistics indicate about 3 per cent of New Zealand homes are being sold to foreigners, but the amount rises to 5 per cent in the scenic Queenstown region and 22 per cent in central Auckland.
Last month, the directors of the International Monetary Fund executive board said they encouraged New Zealand to reconsider the ban, which they thought would be unlikely to improve housing affordability.