Sharechat Logo

Non-Kiwis buy 3.3% of homes in 1Q as upscale Queenstown-Lakes trumps Auckland

Thursday 7th June 2018

Text too small?

Just over 3 percent of 'home transfers' in New Zealand were to non-Kiwis in the first quarter, based on new data that tracks ownership changes from Statistics New Zealand.

“The proportion of homes transferred to overseas people rose to 3.3 percent in the March quarter, from 2.9 percent in the December 2017 quarter,” Stats NZ property statistics manager Melissa McKenzie said. Foreigners are classed as people who don't hold local citizenship or resident visas.

Stats NZ has taken over the task of publishing the home transfer statistics from Land Information New Zealand, which began publishing quarterly property transfers and tax residency reports to try and obtain a better picture of the housing market after growing concerns that foreign buyers were pushing up house prices. In the March 2018 quarter, the territorial authority with the highest proportion of home transfers to overseas people was Queenstown-Lakes district (9.7 percent of all home transfers), followed by Auckland (at 7.3 percent). 

According to the statistics agency, property transfer statistics are based mainly on land transfer tax statements and capture property transfers by New Zealanders and overseas people. This includes information on the citizenship, visa status, or tax residency of people and companies involved in property transfers. The new data includes a time series to make comparisons over time easier, detailed statistics about transfers involving homes and statistics for regions.

There were 40,740 property transfers, including 32,880 home transfers, in the March 2018 quarter. Almost 4 in 5 of the homes were transferred to at least one New Zealand citizen. The other 1 in 5 were transferred to corporate entities, resident-visa holders, and overseas people. The number of home transfers was down 2.4 percent on the year while the number of property transfers was down 2.8 percent on the year.   

Stats NZ said consultation about amendments to the Overseas Investment Act may have been a factor in recent increases in the proportion of transfers to non-New Zealand citizens and residents, noting "the proposed changes could make it more challenging for overseas buyers to purchase residential land in New Zealand.”

According to the data, the proportion of overseas sellers also increased in the March quarter, to reach 1.5 percent, after staying steady at 1.3 percent for a year. 

The government is in the process of amending the Overseas Investment Act to stop foreign speculators buying houses which would otherwise be available for New Zealanders.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares dip as global trade jitters weigh on A2, F&P
NZ dollar set for weekly gain after Reserve Bank surprise
Burger Fuel exploring sale after review questions listing merits
New net migration data to remain rubbery for quite some time
NZX to push sales this year after reshaping business dents 2018 profit
Slowing new orders growth weighs on January PMI
New NZ dry dock a basis for new industry - KiwiRail
Wellington Drive beats 2H sales forecast, will meet earnings guidance
NZIQS decides more training is the answer to past president's misconduct
February 15th Morning Report

IRG See IRG research reports