FOREIGNERS bought almost one in five of the residential properties sold in downtown Auckland in the first quarter of the year, official figures showed, compared to just 3 percent throughout New Zealand. The data, released by Statistics New Zealand, shows foreign buyers targeted hotspots such as the economic hub of Auckland and the southern tourist destination of Queenstown, stirring debate around the causes of soaring house prices. The majority of overseas buyers were from China and neighboring Australia, according to Statistics New Zealand. The proportion of foreigners buying homes varied wildly throughout the country. Nationwide, just 3.1 percent of property transfers were to non-citizens in the first three months of 2018, Statistics New Zealand said. Foreign ownership has attracted criticism in recent years as the country grapples with a housing crisis that has seen average Auckland prices almost double in the past decade to more than NZ$1 million (US$704,000) and rise more than 60 percent nationwide. New Zealand’s government, with popular 37-year-old Jacinda Ardern at the helm, successfully campaigned in 2017 on a promise to clamp down on house price growth and reduce high rates of homelessness, in part by banning foreign buyers. A law restricting most foreigners, including many with short-term residential visas, from purchasing residential property was introduced to parliament in December and is set to come into force this year. Ollie Wall, from boutique Auckland real estate firm Graham Wall, said realtors had seen a “flurry” of overseas buyers get in ahead of the ban on foreign buyers, which could have contributed to the first-quarter result. (SD-Agencies) |