Ban looms on foreign house sales
‘‘The Government will introduce an amendment to the Overseas Investment Act to classify housing as ‘sensitive’ and introduce a residency test. We stand strongly in the view that housing is a right.’’ Prime Minister Jacinda Ardern
Prime Minister Jacinda Ardern will end foreign buying of existing houses by classifying them all as ‘‘sensitive’’ under the Overseas Investment Act.
This would effectively ban foreign speculators without affecting the TPP or most free trade agreements, Ardern said.
Anyone who was not either a citizen or resident of New Zealand would not be allowed to purchase existing homes.
Ardern wants the amendment introduced to Parliament by Christmas.
‘‘The Government will introduce an amendment to the Overseas Investment Act to classify housing as ‘sensitive’ and introduce a residency test,’’ Ardern said.
‘‘We stand strongly in the view that housing is a right.’’
The effect of this change will be that non-residents will not be able to purchase existing homes in New Zealand – other than Australians and New Zealand citizens living overseas.
Ardern expected the legislation would be introduced by Christmas and passed in the new year.
‘‘This does not impact our Korean FTA, nor will it impact the TPP – if we pass it before ratifying.’’
Foreigners would still be able to buy land and develop housing on it.
Trade Minister David Parker said this needed to happened fast because if New Zealand signed up to the Trans-Pacific Partnership without doing so it would effect plenty of other trade agreements, effectively taking away the right to do this forever.
‘‘If this is not done before TPP concludes – if it does – then we effectively lose the right to control this forever.
‘‘This is the time it needs to be implemented.’’
Ardern said challenges for Singapore.
Earlier yesterday, Parker indicated that the Korean free trade deal would not have to be renegotiated.
The law was not retrospective. Ardern and Parker both indicated National had misled them on whether the Korean free trade agreement would allow a stamp duty.
‘‘We’ve had advice that [a stamp duty] would be in breach of our FTA with Korea despite some of the assurances that were given by the past minister of foreign affairs, it appears he was incorrect,’’ Ardern said. it a could deal pose with