Foreign Home Buyers Banned by New Zealand Prime Minister
Foreign home buyers will be banned from purchasing existing homes in New Zealand. This will push funds previously earmarked for New Zealand into Brisbane.
Why a ban on foreign homebuyers?
House prices during the last 5 years have shot up in New Zealand with the average price in Auckland now being in excess of $1m.
What effect will this have on Brisbane?
Many consider Brisbane to have a short-term over supply of inner-city units but demand for new housing is very high.
This is partly due to the ‘spillover’ effect of people selling in Sydney and buying in Brisbane. Also, foreign buyers, especially Chinese see Brisbane property as a bargain compared to Sydney and Melbourne.
Figures on Chinese investment in Queensland
Sales to Chinese Nationals are up almost 90% to $870 million in the past financial year.
The latest report into foreign ownership tabled in State Parliament in October showed Chinese land purchases soared by $400 million last financial year. There is also a lot of interest from Singapore and Hong Kong based investors.
Figures for Singapore and Hong Kong investors
Singapore claimed $421.5m in purchases; up from $157.9m and $111.9m in purchases recorded by Hong Kong investors.
Are Chinese the major foreign owners of Queensland property?
I recently stated that Brisbane is expected to grow at a faster rate than Sydney and Melbourne in the future.
As water finds its own level, the disparity between house prices in our three major capitals, plus the sub-tropical climate and relaxed lifestyle ensure the future growth of Brisbane.
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Today’s Best Buys
The last available property is in Crest Street, Stone Ridge. This estate will see capital gains now it is completed. We also have a quality 5 bedroom executive home in North Lakes.
Until next week …
Steve Taylor
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DISCLAIMER
Steve Taylor & Partners blog is opinion and not advice. Readers should seek their own professional advice on the above subject. The figures stated in this article were accurate at the time of publication. For up to date figures, please contact our office.
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