In New Zealand, where housing prices have risen sharply in recent months, the government forbids the purchase of housing for foreigners to keep prices under control and make it easier for own residents to own their homes. The ban will affect non-citizens, not foreigners residing in the country.
New Zealand Prime Minister Jacinda Ardern said that the coalition members have agreed to ban foreigners from buying housing in New Zealand.
Prices Have Doubled
According to the report made by Habertürk, housing prices have started to rise rapidly in the country due to recent low interest rates, limited housing supply and increasing migration. Since 2008, housing prices in New Zealand have doubled.
Prime Minister Jacinda Ardern said that the law banning foreigners from buying houses would come into force by early 2018, but that ban would not apply to Australians.
Ardern has promised that in his election campaign, he would bring down this ban to reduce housing demand. The National Party, which ruled the previous ruling in the country, was criticized for not solving the crisis in the housing sector.
The Highest Demand Comes From The Chinese And The Americans
The first place among the foreigners who buy houses in New Zealand is the Chinese. Citizens of the United States are following them.
With this move, the government wants to balance supply and demand in the New Zealand housing market and reduce prices and facilitate the purchase of housing for its own citizens.