Property

First-home buyers driving prices more than investors: King

First-home buyers are having more of an impact on Auckland property prices than foreign investors, says the president of the New Zealand Property Investors Federation.

Monday, August 05th 2013

Andrew King was responding to Labour’s announcement than once in power, it would not allow foreign investors to buy second-hand homes in New Zealand.

Australians would be exempted.

King said all signs suggested that investors from other parts of the world did not buy very many of the properties for sale in New Zealand. “It’s unlikely to have a large effect on the market.”

He said it might be fair to restrict buyers from countries where New Zealanders could not purchase but if New Zealanders could buy freely in one country, there was no need to curb that country’s investment behaviour in New Zealand.

“I don’t think it’s the be all and end all, or the king hit. First-home buyers are the biggest driver of house prices at the moment.”

In the year to March, 10,733 people had taken out their KiwiSaver savings to use as a deposit on a first home, he said. “In the same year ended March, there were also 11,000 extra property sales. The fact that they are so close shows that first-home buyers are having more of an effect on demand for property than foreign buyers.”

REINZ sells headquarters

Comments

On Tuesday, August 06th 2013 8:19 am Richard said:

Foreign 'investors' mainly Chinese have pushed central Auckland prices and seller expectations so high that outer suburbs have now followed. Attend as many auctions as I have in central Auckland and you will witness what is happening.

On Tuesday, August 06th 2013 9:13 pm Someone said:

Andrew King is wrong and it can be proven with a simple class room activity. Put 100 people into a room with 100 seats, and give then $100. Get them to treat the seats as houses (high value). Charge them to sit in the seats. You would expect each seat to sell for $1... Repeat but put 101 people in the room. Each seat should sell for $100, and one person will miss out. One extra person in the market can change the demand and increase prices drastically. "All signs suggested that investors from other parts of the world did not buy very many of the properties for sale in New Zealand". But is it enough to skew the ratio of houses to buyers?

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SBS FirstHome Combo	6.74
Heartland Bank - Online	6.89
Wairarapa Building Society	6.95
Unity	6.99
Co-operative Bank - First Home Special	7.04
ICBC	7.05
China Construction Bank	7.09
BNZ - Classic	7.24
ASB Bank	7.24
ANZ Special	7.24
TSB Special	7.24

Unity First Home Buyer special	6.45
Heartland Bank - Online	6.55
SBS Bank Special	6.69
TSB Special	6.75
Westpac Special	6.75
China Construction Bank	6.75
ICBC	6.75
AIA - Go Home Loans	6.75
ASB Bank	6.75
Unity	6.79
Co-operative Bank - Owner Occ	6.79

SBS Bank Special	6.19
ASB Bank	6.39
Westpac Special	6.39
AIA - Go Home Loans	6.39
China Construction Bank	6.40
ICBC	6.49
Kiwibank Special	6.55
BNZ - Classic	6.55
Co-operative Bank - Owner Occ	6.55
TSB Special	6.59
SBS Bank	6.79

SBS FirstHome Combo	6.19
AIA - Back My Build	6.19
ANZ Blueprint to Build	7.39
Credit Union Auckland	7.70
ICBC	7.85
Heartland Bank - Online	7.99
Pepper Money Essential	8.29
Co-operative Bank - Owner Occ	8.40
Co-operative Bank - Standard	8.40
First Credit Union Standard	8.50
Kiwibank	8.50