Greens call for tighter rules on foreigners buying NZ homes

Growing demand for Auckland homes from overseas buyers may shut young Kiwis out of the market unless the Government follows Australia's lead and tightens foreign ownership rules, Greens co-leader Russel Norman says.

Dr Norman has found an ally in successful North Shore real estate agent Matty Ma, who says strong demand from mainland China-based buyers is set to accelerate further.

Dr Norman yesterday called on the Government to tighten overseas investment rules around housing after the Australian Government responded to complaints about foreigners driving up house prices there.

Temporary residents, including students, will have to sell their houses when they leave Australia and the Government will also match travel details with ownership data to ensure people who violate the laws are caught.

New penalties created under civil law will also apply to real estate agents and the Government may also claw back any capital gains made by foreign investors who breach the arrangements.

"The danger to New Zealand is that if Australia tightens rules on foreign investment in housing, investors may head to New Zealand [which has an] open door foreign investment policy", said Dr Norman.

To read the full NZ Herald article, click here

Posted: 27 Apr 2010

News articles