The median home price in New Zealand has surged more than 57 percent since 2010 and now the Kiwi nation has decided to do something about it: ban outsiders from buying their homes.
The Wall Street Journal reported New Zealand’s parliament approved new regulations on Wednesday that prohibit currently existing residential properties from being purchased by foreigners.
“This Government believes that New Zealanders should not be outbid by wealthier foreign buyers,” trade minister David Parker said.
Chinese investment in the New Zealand real estate market had been growing in recent years, especially in Auckland, the country’s capital and financial center. But western celebrities and businessmen like Matt Lauer and Peter Thiel have also made well-publicized luxury home purchases.
Under the new law, foreigners will still be able to buy new construction homes, however, such as units in condominium projects. Foreign developers who build large housing complexes will be allowed to market some units to foreign buyers, the Journal reported. [WSJ] — Will Parker