Property

Limited impact from foreign buyer ban - REINZ

The upcoming foreign buyer ban on purchasing existing properties is expected to have a minimal impact on sales, according to new research from the Real Estate Institute of New Zealand.

Monday, December 11th 2017

A recent REINZ survey of its members revealed that currently only a minority of buyers are from overseas (3.8%).

REINZ chief executive Bindi Norwell says that ahead of the government’s upcoming foreign buyer ban they were interested to understand exactly what percentage of sales were to international buyers.

“There is minimal data available. So, who better to ask than those who deal with this day in and day out – our members.

“Our survey indicates that only a small number of sales are made to buyers from offshore – the clear majority of sales are made to locals (63.9%) and those from other towns or cities from within New Zealand (29.8%).”

The survey also looked at the make- up of open home visitors and this showed that the majority of open home visitors were local (64.1%).

They were followed by 28% from out of town and only 4.5% from overseas, while the remaining 3.4% were classed as ‘other’.

Norwell says that, given international buyers are such a small part of the market they are interested to understand what impact the government believes the foreign buyer ban will actually have.

“We know when looking at Australia that a similar policy there has had little impact with Australia still remaining the third most unaffordable country in the world.”

The survey also looked at the make-up of buyers in the market overall.

It shows that currently most purchasers are owner occupiers (52.3%), followed by first time buyers (26.3%).

Investors amounted to just 14.2% of buyers, while the remaining 7.3% of buyers were classified as ‘other’.

Comments

No comments yet

Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
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 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
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

More Stories

Support for regulation

Monday, March 18th 2024

Support for regulation

REINZ has emphasised the need for property management regulation to Parliament’s Social Services and Community Committee.

A better investment market

Thursday, March 14th 2024

A better investment market

“Reinstatement of interest deductibility starting from the new tax year on 1 April brings property investors back in line with every other business in the country, where interest costs are a legitimate deductible expense," Tim Horsbrugh, New Zealand Property Investors Federation (NZPIF) executive committee member says.

[OPINION] Recessionary times

Thursday, March 14th 2024

[OPINION] Recessionary times

It is not the best out there for many businesses and property sector people. Sales are down across the board, our clients’ confidence is falling, and there is a lot of uncertainty.

Interest rate expectations: It’s not over yet

Thursday, March 07th 2024

Interest rate expectations: It’s not over yet

Most Kiwis think interest rate increases have peaked.