Few foreign buyers in NZ housing, say agents

A ban on foreign buyers purchasing existing homes is likely to have only a small impact on sales, the Real Estate Institute says.

A survey of its salespeople found that only a small percentage of sales were to people from overseas – just 3.8 per cent.

Bindi Norwell, the institute’s chief executive, said her organisation wanted to get more information because the data available on foreign investors was limited.

‘‘Our survey indicates that only a small number of sales are made to buyers from offshore. The clear majority of sales are made to locals, 63.9 per cent, and those from other towns or cities from within New Zealand, 29.8 per cent.’’

The survey also asked about home visitors. Most were local (64.1 per cent), followed by 28 per cent from out of town and 4.5 per cent from overseas.

The remaining 3.4 per cent were classed as ‘‘other’’.

Infometrics chief forecaster Gareth Kiernan said the numbers were in line with Land Information New Zealand data.

‘‘But we’ve always wondered how good those figures are given they don’t have to capture the tax residency of people purchasing property for owner-occupation.’’

Economist Shaumbeel Eaqub said it was in line with what he expected, at less than 10 per cent of the market. ‘‘Again not definitive, but better than nothing. The proof will be in the pudding. If they are a big part, expect a surge in sales before the ban becomes effective.’’

The salespeople said most purchasers were owner-occupiers (52.3 per cent), followed by firsttime buyers (26.3 per cent) and investors (14.2 per cent). The remaining 7.3 per cent of buyers were classified as ‘‘other’’.