Migrants are taking a smaller share of the residential property market, according to the latest property transfer figures from Statistics NZ.
These show people with residence visas, but not NZ citizenship, were the buyers in 11.8% of the property transfers involving a dwelling in the second quarter of this year.
That was the third consecutive quarter in which residence visa holders' share of NZ dwelling purchases has declined, since it peaked at 14.3% in the third quarter last year.
Prior to the decline over the last three quarters, migrants' share of dwelling purchases had increased steadily from 7.7% when the data series began in the fourth quarter of 2016, to the peak of 14.3% in the third quarter last year. (See graph below).
The figures also show migrants are almost three times as likely to be the buyer of a residential dwelling than they are to be the seller.
People with residence visas made up just 4.3% of the vendors of residential dwellings in the June quarter this year, down from their peak of 5.1% in the March quarter of 2021.
In the 12 months to June 2024, 16,704 New Zealand dwellings were transferred to people with residence visas, which was 13.3% of total sales.
Conversely residence visa holders were the vendors of just 5370 residential dwellings over the same period.
However, the total role migrants play in the property market is likely to be greater than the above figures suggest. That's because many migrants who may have originally had residence visas, go on to obtain New Zealand citizenship. And the property transfer statistics do not differentiate between citizens who migrated to NZ and those who were born here.
- The comment stream on this story is now closed.
•You can have articles like this delivered directly to your inbox via our free Property Newsletter. We send it out 3-5 times a week with all of our property-related news, including auction results, interest rate movements and market commentary and analysis. To start receiving them, register here (it's free) and when approved you can select any of our free email newsletters.
21 Comments
Isnt it great that we gifted hundreds of thousands of immigrants with immediate residency, no work skills required, and then gave them all taxpayer funds to go buy their first house?
"... and then gave them all taxpayer funds to go buy their first house?"
Oh, when was that?
They all get the First Home Buyer Grant and Loan. https://www.oneroof.co.nz/news/first-home-loan-scheme-is-open-to-abuse-…
The majority of home buyers accessing the government’s First Home Loan scheme are new arrivals to New Zealand, mortgage brokers have told OneRoof.
Not true, you needed to be in Kiwi saver for at least 3 years to apply for the grant and non residents cannot join Kiwi saver. The grant is now closed, so precisely 0 of those granted the 2021 resident visa will receive taxpayer dollars.
Until they default on their mortgage, then taxpayers will have to stump up the funds to pay the bank.
This sounds bit exaggerated. There is an income threshold to be eligible for FHG. So it's not all. I truly follow great comments from K.W. But dont be too harsh because of some immigrants.
How many years in NZ are needed before you can get into Australia?
5 years of resident visa then you can apply for NZ citizenship which to get you must accept to stay in NZ an other 12 months.
6 years total.
A few new migrants around the block (been there less than a year). The shock when they discover the money they got for their mortgage free house back in the US/Europe only covers the deposit here.
Your migrants are from the US and Europe?
Yes they are. I should have mentioned I'm in Hamilton's northern suburbs, which are the most expensive in town, they are highly skilled migrants.
'- the property transfer statistics do not differentiate between citizens who migrated to NZ and those who were born here'.
"30 years-old Riyaan Mohamed owns 13 properties and has set himself the goal of continually accumulating rentals until he becomes a billionaire ..." (Herald a few days back). And that's why we need more, cheaper Debt. So Riyann can sell-up to the freshly indebted and realise his fortune.
Good for him, all the Interest dgm's will be his tenants.
Billionaire? LOL
Let's say Riyann started investing at 20 and that real estate doubles every 10 years, you'd need an initial investment of $62,5 millions to have $1 billion at age 60...
Of course rents will generate money too. Doesn't change the fact it's unattainable in any way.
This is no surprise to those of us who see the skill level of the majority of the migrants.
Sure in a population size this big there will be outliers, but the core migrant population cannot afford to enter the Ponzi at these levels.
99% of Warren Buffets fortune was made after he turned 65. Compounding works.
Warren Buffet is smarter then most, if he was in NZ maybe he would have bought Riverhead....
By this time next year, Rodney, we will be Billionares.
99% of Warren Buffets fortune was made after he turned 65. Compounding works.
Nancy Pelosi is arguably a better trader than Warren Buffet.
What does that tell you?
Buffet isn't a trader..
Democrats dont go to jail for insider trading?
This seems to me a pretty high % given that the number of permanent residents (without citizenship) is a much much smaller number than NZ citizens
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.