Labours’ radical and discriminatory new housing policy is not only racist, but it would be totally ineffective.
Most foreign home buyers in New Zealand are Australian (exempt from this policy), and English. The total is less than 5 per cent, so the rampant Asian uptake is a delusion. Most are New Zealand residents, and they are a small proportion of a tiny proportion of New Zealand home buyers. The cost of policing such a wild scheme would far outweigh any benefit to the market, which is dubious at best. This is an absolute policy gaff, a populist vote catching scheme stolen off Winston Peters in a moment of blind panic by Labour. What are they thinking? They aren’t thinking at all. The only thing that will slow this market is a lot more cheap Auckland housing & the completion of the Christchurch rebuild. Both will take a few years, so no change in the foreseeable future no matter what the politicians say or do.
The heat is on in Auckland for sure. The rest of the New Zealand market is basically business as we have known it for some time now, short on stock, plenty of buyers and only a little capital growth.