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New Zealand Govt Wants To Ban Non Residents From Purchasing Properties

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| February 19 , 2018 , 17:31 IST

The new Labour-led government in New Zealand wants to ban non-residents from purchasing residential properties and farms.

"I am trying to protect New Zealanders against some of the excesses of global capitalism," trade minister David Parker said.

New Zealand is ranked one on the World Bank’s Ease of Doing Business list, making it the best country in the world for entrepreneurs to live and do business in. Further, its air quality is one of the best on the world - for instance Auckland’s PM2.5 levels hovers around 2 or 3, whereas Delhi’s PM2.5 levels frequently climbs up to 400 or more!

Auckland and also other Kiwi cities such as Wellington are often counted amongst the best cities to live in, because of its excellent health and education facilities as well as other factors affecting quality of life. Moreover New Zealand is politically stable, safe, and far from the terror attacks and other such nuisances plaguing the rest of the world.

It is no wonder therefore that the annual net migration rate is 70,000 people, or about 1.5% of the population. China is close by, and so Chinese investors have flocked to New Zealand and are amongst the biggest offshore buyers of real estate.

Last year, national median average house prices increased by 5.8% to 550,000 New Zealand dollars while in Auckland, the country's most expensive city, prices rose by 1.8% to NZ$870,000. In Wellington, real estate prices soared by more than 18% in the year to June 2017.

New Zealand is not the first to consider banning non Kiwis to buy real estate. There have been other countries that have done the same earlier. Switzerland has done so since the 1960s. Singapore and Hong Kong have imposed extra taxes on foreign buyers.

Balaji

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