New Zealand to allow some wealthy foreign investors onto property market

WELLINGTON New Zealand AP New Zealand will relax a ban on foreigners buying homes in the country to allow certain wealthy overseas business investors a single high-value residential property purchase Prime Minister Christopher Luxon commented Monday The move partially reverses a ban introduced in by a previous governing body to cool a runaway housing sector fueled by property speculation Holders of a residency golden visa reintroduced by Luxon s authorities in April will now be able to buy one home worth at least million New Zealand dollars million Luxon disclosed the move balanced a desire to attract wealthy investors to the country with allaying house price fears The change stops well short of a full reversal of the procedures and would apply only to a small number of wealthy foreigners and a limited number of houses he added The visas which were intended to draw overseas investors to the country s businesses give residency to people investing a minimum NZ million in New Zealand businesses over three years or NZ million over five years if the money is deposited in less risky investments Selected visa holders had been ineligible to buy property because they didn t live in New Zealand for at least six months of the year That requirement will now be waived Luxon s opponents decried the agenda reversal Monday saying it focused on attracting wealthy foreigners instead of solving domestic problems Multiple Kiwis are already struggling to buy a home and he has just made it worse opposition Labour housing spokesperson Kieran McAnulty reported Homelessness is up unemployment is up and people cannot afford the basics at the supermarket Push to attract wealthy foreign investors The executive hopes reversing the ban for selected will boost economic development by luring wealthy foreigners to the country during a period of recession We re a safe haven in a very volatile and uncertain world Luxon advised reporters in Auckland on Monday of his ruling body s pitch to investors abroad Those investors would create jobs he stated Luxon denied the move would lift house prices which have fallen from a peak He noted applications so far for the residency visa that would allow a home purchase could end in up to NZ billion in capital Authorities have received just over applications for the visas representing about people administration figures exhibited Almost of applicants were from the United States Luxon announced the rule that houses must be worth a minimum amount meant that fewer than of New Zealand s houses - about homes - would be eligible for foreign investors to buy The majority of those home about are in the largest city Auckland with around in the popular skiing and tourism destination of Queenstown on the South Island where wealthy foreigners have snapped up bolt holes before The average cost of a home in July was NZ according to figures from the Real Estate Institute of New Zealand In Auckland the average cost was NZ Housing dilemma The ban on allowing foreigners to buy property which was introduced during a housing affordability predicament prompted debate about the extent to which foreigners had contributed to ballooning prices and shut out domestic first-time buyers Figures at the time revealed about of New Zealand homes were being sold to foreigners although the number rose to in Auckland Exceptions to the ban were made for Australians and Singaporeans under bargain agreements Endorsement for the ban was bolstered by anecdotal tales never well-substantiated of wealthy foreigners building doomsday-style bunkers in the scenic Queenstown region New Zealand located in a remote part of the South Pacific is a popular destination for settlers seeking distance from global tumult and applications to move there often increase during moments of turbulence according to years of official facts Luxon s center-right party campaigned in the ballot on a pledge to reverse the ban His negotiations as part of a coalition governing deal with other political parties however forced him to compromise on only a partial rollback Source