A new opinion poll in New Zealand has showed that the Labour Party’s attack on foreign buyers, especially Chinese foreign buyers in the Auckland property market, has not given it a popularity boost. Though Labour’s gambit of a racial division turning into political capital did not happen, a section of public opinion has definitely shifted to its side. This was apparent in the opinion poll on that issue.

The top leader of Labour defended its stand and said, "this is a hugely important issue.” Andrew Little charged the Government with ignoring it for far too long. “Someone had to raise it, as uncomfortable as it is. We've raised it and going to continue to fight on that issue."

The latest opinion poll showed the “Labour effect” when respondents were asked whether the government should ban "foreign buyers", who are not residents or citizens from buying houses in the country, 61 percent said yes. Thirty-five percent said no, and the rest did not know take a clear stand. Even a majority of ruling National Party’s voters favoured a ban. From the National’s support base, 54 percent said yes and 43 percent opposed it. The rest was non-committal.

Curbs required

Meanwhile, the call for setting up a foreign property buyers’ register has found support in Geoff Barnett, National Manager of Century 21 New Zealand. He said foreign buyers’ register makes sense because that information would be helpful for the Government as well as real estate industry.

The government has already rejected the call for a foreign buyers’ register though it initiated a law change, to be made applicable from October, seeking more information from the buyers. He said Labour’s claims of excessive speculation by offshore Chinese investors in the Auckland housing market are not surprising. “I don’t believe the reported quantum is quite right but nonetheless the issue confirmed many people’s long held suspicions. However let’s not forget New Zealand needs overseas investment to help drive our economy and so there is absolutely nothing to fear.”

New construction

Barnett welcomed foreign investment in the housing sector, but said it should be better reserved in the area of new residential construction only and the Government needs to change the laws accordingly. “If overseas investors had to build new houses rather than buying into the existing housing stock, it would help the levels of housing stock, while helping the economy with more jobs and the flow on effects that creates. It’s their buying of our existing stock that is creating the concerns around ongoing shortages, so enforcing a rule to build new will help everyone. They get to invest and housing stock increases which is the real issue we should be addressing,” Barnett noted.

Century 21 is an international real estate agency with 20 offices in New Zealand and 7,500 offices in 80 countries. Its global website www.century21global.com carries listings from all over the world.

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