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New Zealand bans sales of homes to foreigners | New Zealand bans sales of homes to foreigners |
(about 7 hours later) | |
New Zealand's parliament has banned many foreigners from buying existing homes in the country - a move aimed at making properties more affordable. | New Zealand's parliament has banned many foreigners from buying existing homes in the country - a move aimed at making properties more affordable. |
The ban only applies to non-residents. Australians and Singaporeans are exempt because of free-trade deals. | The ban only applies to non-residents. Australians and Singaporeans are exempt because of free-trade deals. |
New Zealand is facing a housing affordability crisis which has left home ownership out of reach for many. | New Zealand is facing a housing affordability crisis which has left home ownership out of reach for many. |
Low interest rates, limited housing stock and immigration have driven up prices in recent years. | Low interest rates, limited housing stock and immigration have driven up prices in recent years. |
Is it a total ban? | Is it a total ban? |
No, only non-residents are affected by the Overseas Investment Amendment Bill, which was passed in a 63-57 vote on Wednesday. | No, only non-residents are affected by the Overseas Investment Amendment Bill, which was passed in a 63-57 vote on Wednesday. |
They are now banned from purchasing most types of homes - but they will be able to make limited investments in new apartments in large developments. | They are now banned from purchasing most types of homes - but they will be able to make limited investments in new apartments in large developments. |
Foreigners with residency status in New Zealand - as well as non-resident Australian and Singaporean nationals - are not affected by the ban. | Foreigners with residency status in New Zealand - as well as non-resident Australian and Singaporean nationals - are not affected by the ban. |
New Zealand's Trade and Economic Development Minister David Parker described the passage of the bill as a "significant milestone". | New Zealand's Trade and Economic Development Minister David Parker described the passage of the bill as a "significant milestone". |
"This government believes that New Zealanders should not be outbid by wealthier foreign buyers," he said. | "This government believes that New Zealanders should not be outbid by wealthier foreign buyers," he said. |
"Whether it's a beautiful lakeside or ocean-front estate, or a modest suburban house, this law ensures that the market for our homes is set in New Zealand, not on the international market." | "Whether it's a beautiful lakeside or ocean-front estate, or a modest suburban house, this law ensures that the market for our homes is set in New Zealand, not on the international market." |
But opponents said the ban was unnecessary and would not fix any problem. | But opponents said the ban was unnecessary and would not fix any problem. |
Foreign ownership and a housing shortage in New Zealand's bigger cities were prominent issues in the run-up to last year's election, which saw the end of nine years of rule by the conservative National Party. | Foreign ownership and a housing shortage in New Zealand's bigger cities were prominent issues in the run-up to last year's election, which saw the end of nine years of rule by the conservative National Party. |
New Zealand now has a centre-left coalition government led by Labour's Jacinda Ardern, the country's youngest female leader. | New Zealand now has a centre-left coalition government led by Labour's Jacinda Ardern, the country's youngest female leader. |
What's the bigger picture? | What's the bigger picture? |
The ban follows fears that overseas buyers of homes were putting too much pressure on infrastructure and house prices. | The ban follows fears that overseas buyers of homes were putting too much pressure on infrastructure and house prices. |
Chinese investors have been among the biggest and most active offshore buyers of property in the New Zealand market. | Chinese investors have been among the biggest and most active offshore buyers of property in the New Zealand market. |
Also, some wealthy Americans - like Silicon Valley tech billionaire Peter Thiel - have become New Zealand citizens or have bought property in the country. | |
Average prices in New Zealand have risen more than 60% in the past 10 years, while in Auckland - the country's largest city - they have almost doubled. | |
However, the housing market has somewhat cooled in recent months. | However, the housing market has somewhat cooled in recent months. |
In July, the median price for residential property nationwide was NZ$550,000 ($360,500; £284,000), according to data from the Real Estate Institute of New Zealand. | In July, the median price for residential property nationwide was NZ$550,000 ($360,500; £284,000), according to data from the Real Estate Institute of New Zealand. |
In June, about 82% of houses were bought by New Zealand's citizens or residents, with fewer than 3% of homes going to foreigners. | In June, about 82% of houses were bought by New Zealand's citizens or residents, with fewer than 3% of homes going to foreigners. |
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