Whether you’ve seen it on the TV news, the print media, or social media, you will now doubt be aware that successive governments have been working since October 2015 to slow down the NZ housing market.
The latest piece of legislation to attempt a market slowdown comes in the form of prohibiting sales to non-resident buyers.
But there are exceptions, such as citizens and residents of Australia and Singapore being able to still buy property in New Zealand. While the current government is trying to ensure their voter base is able to buy into the market, they are also balancing the aspirations of current property owners in maintaining the value of their existing property holdings. Not an easy balancing act.
As with any change, there’s some caution on the part of buyers. The question I keep hearing is, will this turn the market?
In short, the answer is “Not in my view”.
Migrants into New Zealand on a resident visa can purchase property and with net inflow migration still at high levels, there is nothing to suggestion we are close to building sufficient houses to accommodate the current demand. In addition to that, with at least one million NZ passport holders overseas, they can return at any time and buy property – we’ve been watching that process occur for decades.
If I were asked what effect this will have on the market, looking back at the last 21 years in this business, I’d say the answer is “Very little”.
Our new listing at Halifax Street, Nelson is having it’s second of three open homes this Sunday – we look forward to welcoming you there.
Have a good week and do enjoy this lovely Spring weather.