There was a dramatic slide in the number of homes sold to overseas buyers last year, according to the latest figures from Statistics NZ.
These show just 0.4% of residential property transfers throughout the country were to overseas owners in the fourth quarter of last year, down from 2.3% in the same quarter of 2018.
In the Auckland region, where activity by foreign buyers has traditionally been greatest, transfers to overseas owners dropped to 0.6% in the fourth quarter of last year from 4.9% in the fourth quarter of 2018.
One of the biggest falls was in Auckland's Waitemata Ward, which includes leafy city fringe suburbs such as Herne Bay, where the percentage of homes transferred to overseas owners dropped to 4.0% in Q4 2019 from 13.7% in Q4 2018.
The figures also show that overseas owners are selling twice as many New Zealand residential properties than they are buying.
In the fourth quarter of last year overseas buyers purchased 147 residential properties (down from 885 a year earlier) but sold 333 over the same period (down from 414 a year earlier), suggesting they are net sellers by a substantial margin.
However the figures may not provide an accurate reflection of activity by overseas buyers because they do not include sales where the purchaser was a company, and it is extremely common for investors, whether based in this country or overseas, to use a company structure to buy property assets.
The figures also do not include sales made to a trust where at least one trustee is a New Zealand citizen, and most trusts are likely to have a New Zealand-based accountant or lawyer as a trustee, even if the settlor or beneficiaries are overseas.
And of course the figures are unlikely to capture sales where an overseas person provides financial backing for a purchase which is made through a local associate such as a family member who is a New Zealand citizen or resident.
So the figures are likely to have so many gaps in them they are probably not an accurate reflection of total overseas buyer activity and should be treated with caution, if not outright scepticism.
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25 Comments
why has the col not implemented a register yet, all three said in opposition they would do it.
then they get in power and nothing,
Remember..all talk..no action...
If there was a legit reason they would have said.
Like... ok we were going to do this, but now we changed our mind because .........
When you get a change of mind with no reason, no communication (from a group of activists that pride themselves on "messaging"). This is tell$ (cash, cash in kind quid pro quo).
Like the suddenly forgot how to tweet.
Incompetent or effective lobbyists.
Who wins an activist or a lobbyist?
Those figures have no credibility, much like the arranged marriage visa scam...theres a hundred ways of getting around the foreign buyer ban...just ask the chinese looking guy who used to pay my old boss for 3 new builds at a time using a beerbox full of cash notes...boss reckoned he'd have trouble putting it away but he always managed too...
For sure, agreed - that is how it is.. They every shrewd way to get what they want (a piece of land).. outside China, preferably in dumb mindset cheap country. Everyone can easily swayed promised by cash job, clean, plenty of gift when you do business with Chinese (a way to smooth out, every main deal first) - Once the main deal achieved, then make a move (united front kinda).. Chinese for China, China for Chinese. The Chinese will only deal with another Chinese, by the same token expat from SA with SA, from UK with UK, from India with another Indian etc. - But there's a slight different when you deal with the Chinese. They like to keep the upper echelon good lobbyist at the top of every countries, benefiting a few leaders, politicians, parties. For sure definitely not the main population of country that hosting them.
Another set of stats with very little in common with reality. ''Lies, damn lies & statistics,'' I think it goes.
Don't worry, I was a skeptic already :)
Exclusion of Trusts and Company's...Being transactions are required to disclose all ownership and where the money is coming from surely this cannot be that difficult. Its like a sick joke on NZ resident taxpayers that just keeps going and going...
Yeah...companies should have to be majority NZ-owned to purchase.
How come house price still increase and even spread to places outside of AKL when foreign buyers are less than 0.4%?
The figures also do not include sales made to a trust where at least one trustee is a New Zealand citizen, and most trusts are likely to have a New Zealand-based accountant or lawyer as a trustee, even if the settlor or beneficiaries are overseas.
And of course the figures are unlikely to capture sales where an overseas person provides financial backing for a purchase which is made through a local associate such as a family member who is a New Zealand citizen or resident.
But why in many other parts of NZ outside AKL where there is hardly any recent migrants?
Because Auckland investors have been looking for gains elsewhere. You don't have to live in a city to purchase property, right? Unless of course you live under the glorious CCP. Then you get a 99 year lease on a crumbling concrete box.
Let be honest.. Check all those glorious apartment in OZ, yip no migrants. But check the recent purchase/ownership.
The paper deed of the transactions is more of a clue as from comparing about the migrants number to correlate the data.
OK here's a clue.. sure property is always increasing.. but check-out about worldwide (including NZ), sudden steep price increase from 2012-2016 - direct or indirectly, do find out where those cash injections suddenly coming from? - From philanthropic Nation? C'mon.
Just a hunch, a recent flurry of activity again in last quarter/2018-somehow started after JK visited the no.1 CCP? bet you more $ outflow came from Bank that JK now affiliated with.
Surely you aren't insinuating that JK is as crooked as his nose is long? Don't forget another ex nat... Mr Brash is involved in the China (?) Construction Bank...
Government , when plaining a policy ,always keep loopholes for vested interest to take advantage of them and FBB is Company and Trust.
Need say more about the intenet of the Labour led government.
Election comming and what choice does New Zealanders have .......... Perfect time for a new solid political party to change Status Quo
Crank up New Labour again?
About to collapse bad luck if you purchased in last 18 months you will most likely be negative equity in property by April with what is happening. I hope people realise the current prices are way to high to sustain.
Now this virus is here it will start to effect economy/jobs and people who have stretched themselves may find the bank calling to talk about options.
Trogan Buyers are being used by overseas buyers. What a surprise......
Is that a kind of Bogan Trojan? Scary stuff.
Yes bogan trojan, find a westie and offer him or her a deal most likely from wendies...to let you get behind the wheel...
Straight from the horses mouth:
"Many have family here in New Zealand and they often buy property through them. The hardest part is not in fact the legislation, but getting their money out of China." - Peter Thompson.
https://i.stuff.co.nz/business/118997122/real-estate-agents-target-chin…
No one from NZ RE industry want to talk, acknowledge the effect of this China ban of their own capital outflow. It's more effective than NZ govt, RBNZ, non-existent CGT, toothless DTI & LVR management etc. - but from last quarter to now, they're hoping the flurry of activity back again in RE industry after the super agent JK visit to CCP no1 - requesting special exception for NZ. - But then, alas now this freakin bugs.
Lab could be NATO: No Action Talk Only but then again Nat? just denial talk, but slowly & surely it's about personal pocket at the expense of future generation of NZ. Liked the photo on this article though, it's like.. NZ is just specifically marketed/sold to just one country. Only 3 months ago.. the JK/ex. Nat Co. buddy - Mr Xi Jinping announced on the 1st Oct. that... 'No force in the world can stop China..' cough cough.. SARS, MERS, CORONA/nCov19,.. next? this year nCov20.. BUT may be, just may be.. if China can ban their citizen from the habit of spitting around, unfortunately those sputum, dried & airborne difficult to stop, so banning capital outflow from China is the best way, so the money can be spent internally in China to fix things that actually difficult to do.
Is that a bit of Xenophobia that I smell, with a hint of racism?
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