Confirmed: foreigners not welcome in New Zealand real estate

The controversial legislation to cool runaway home prices was passed this week.

The Overseas Investment Amendment Bill, which entitles citizens and foreigners with residency status to buy homes, passed its third and final reading in the House.

New Zealand passed legislation Wednesday limiting the sale of residential properties to citizens and permanent residents but buyers from certain countries can still take advantage of the Kiwi housing market.

Policymakers had been mulling the ban on sales to foreigners to temper fast-appreciating home prices thought to be galvanised by overseas speculators and holiday home owners. "This government believes that New Zealanders should not be outbid by wealthier foreign buyers," said Associate Finance Minister David Parker in a statement.

"Whether it's a beautiful lakeside or oceanfront estate, or a modest suburban house, this law ensures that the market for our homes is set in New Zealand, not on the international market."

Due to international trade agreements, citizens and permanent residents from Australia and Singapore can still buy property in the country.

The policy adds the caveat, however, that if the current number of Singapore buyers "materially increases," the two governments will “meet to discuss the cause of the increase and how to address it, if required.”

The legislation will not affect homes already sold to foreigners in retrospect.

Ref: Propertyreport