Map of Australia and New Zealand

New Zealand Banning Foreign House Buyers To Lower Extreme Prices

August 15, 2018

Think house prices are too high in North Texas? Try living in a country where foreign investors have caused house prices to double in just 10 years!

CNN reports Australia has been trying to slow-down the crazy-high housing market prices, banning foreign investors from buying existing properties, and prices have been falling since the end of last year.

Now, the much smaller country of New Zealand, which has almost doubled house prices in the past 10 years, is taking similar steps!

New Zealand has been experiencing a similar house price boom as North Texas which is leaving many locals financially unable to purchase a house. Demographia, a public policy firm, consistantly ranks Auckland New Zealand as one of the world's least affordable places to purchase a house.

Today, New Zealand's parliament passed a law, the Overseas Investment Amendment Bill, which now bans non-residents from purchasing into most areas of it's residential housing market. The law does not affect Australian and Singaporean buyers because of agreements in place between the countries.

According to CNN, the majority of foreign house buyers in New Zealand, are from China.

This makes me think of our 50th state, Hawaii. Having visited there 3 times since 2014 as a representative of 98.7K-LUV, I learned many locals live 2-families per house, and purchasing a property is very difficult due to extremely high prices brought on by foreign buyers.

Things that make you go "Hmm?"