New Zealand bans foreign buyers amidst rising house prices.
The government move does not allow foreign buyers to buy existing homes.
The move is an effort to cool the New Zealand’s hot housing market.
The country’s housing market is super hot like Vancouver’s.
The idea of banning foreign buyers has come up in B.C.
But there is no indication it will happen.
However, the NDP government of Premier John Horgan has ordered an investigation into why house prices have been on such a hot streak.
So there is no doubt about it – changes will come to the B.C. real estate industry.
New Zealand’s Prime minister-elect Jacinda Ardern says the ban only applies to non-residents.
The country is facing a housing affordability crisis.
And that has left home ownership out of reach for many.
So New Zealand bans foreign buyers.
Low interest rates, limited housing stock and immigration have driven up prices in recent years.
Previously the housing market was open to investors worldwide.
There have also been stories of wealthy Chinese buyers outbidding New Zealanders on homes in the city of Auckland.
There are some exceptions to the ban..
Foreigners with New Zealand residency status can buy.
People from Australia and Singapore also can buy due to existing free-trade agreements.
Skyrocketing Auckland house prices concern New Zealanders.
Prices there remain among the most expensive in the world, when compared with people’s incomes.
Figures released by the Real Estate Institute of New Zealand indicate the median house price in Auckland is 835,000 New Zealand dollars (C$719,000) while the median price across the country is NZ$550,000 (C$473,000).