New Zealand bars home sales to foreigners

NEW Zealand has banned most foreigners from buying homes as it tries to tackle runaway house prices.

The country’s housing market was previously open to investors worldwide, but the government yesterday passed legislation that allows only New Zealand residents to buy homes.

Wealthy foreigners have bought ranches in rural New Zealand, including James Cameron, director of the film Titanic.

Around 3 per cent of homes are being sold to foreigners, but this rises to 5 per cent in the scenic Queenstown region and 22 per cent in central Auckland.

The new law fulfils a campaign pledge by the liberal-led government which came to power last year.

Foreigners with New Zealand residency status will still be able to buy homes, as will people from Australia and Singapore, thanks to existing free-trade agreements.

Foreigners who own homes in New Zealand will not be affected, and overseas buyers will be able to make limited investments in apartment blocks and hotels.

Associate finance minister David Parker said it was the birthright of all New Zealanders to buy homes at a fair price, adding: ‘New Zealanders should not be outbid by wealthier foreign buyers.’