Don't blame foreigners for booming coastal property prices
Monday 16 August 2004
Wealthy foreigners aren't to blame for rocketing coastal property prices - real estate agents say it's the fault of Aucklanders and other well-heeled Kiwis scrambling to buy their quarter-acre "pavlova paradise".
By The LandlordOf the country's 6000km of privately owned waterfront land, only 130km is in foreign hands, Land Information New Zealand records show.
Sales to overseas buyers through the Overseas Investment Commission (OIC) have also dropped significantly. In 2002 more than 7km of waterfront land was sold to foreigners but, in the 12 months to June this year, that fell to 2.4km.
The OIC approves all waterfront sales to foreigners if the land is over 0.2ha.
Bayleys waterfront specialist John Greenwood said overseas buyers had been unfairly getting the blame. "(It's a) myth . . . there simply aren't enough (foreigners) buying here in sufficient volume to have any significant impact on values," he told a coastal environment conference this month.
Read More - Opens in a new window
Commenting is closed
Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.
Tales of strife and problems abound in the commercial property world these days, but the impact of the Covid-19 pandemic has not been as devastating for all commercial players.
Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.