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New Zealand: In before the door closes
By Juwai, 20 September 2018
New Zealand real estate has always been attractive to international property buyers because of the quality of life, access to good education and amazing amenities. The ease of buying property, which can happen in as little as three to four weeks1 once a bid is accepted, helps real estate agents and property developers alike.
The recent announcement by the New Zealand government to ban non-resident foreigners from buying property in some sectors saw shockwaves around the world. Confusion was intensified because foreign buyers have not been told when the ban will come into force.
What interested buyers need to know
Overseas property buyers and investors will still be able to buy new housing, apartments, retirement village units, student accommodation and aged-care facilities. The ban only prevents purchases of existing, standalone homes or residential land within the country1.
Overseas buyers are also able to buy as much as 60% of off-plan units from property developers2 without obtaining consent, or on-sell once construction is complete.
Resident visa holders also need to spend at least 183 days a year in New Zealand to be able to purchase homes without obtaining consent1.
Although the New Zealand Parliament passed the law on 15 August 2018, the restrictions will come into effect after approximately two months from receiving formal assent from the Governor General3. which should be before Christmas 20184.
“...most other things are up for grabs, with the emphasis on building new houses, big apartment developments, residential land for commercial purposes, like hotels, supermarkets and businesses that create jobs” - New Zealand Herald, 20 June, 2018.
The door is closing
The small window of opportunity to purchase a dream New Zealand property is closing, but there is enough time to to act - if the right channels are used.
This timing is actually perfect as the Chinese will take advantage of the Golden Week to travel starting from 1 October 2018. This also satisfies their year-end urge to buy property in time for Chinese New Year in 2019. If you don’t already know, Golden Week is when millions of Chinese take the opportunity to travel overseas, and up to as many as 77% have property purchase intentions when they are abroad.
Use this window of opportunity
Since New Zealand is an attractive proposition for the Chinese, you may want to give a thought to the various properties that may help make their purchasing and investment decisions easier5. Studies also note that quality education play an important role in Chinese real estate purchases. Remember to highlight proximity to good schools and universities6 in the area of your listings.
To connect with the right Chinese markets quickly, you should consider looking into Juwai’s New Zealand Special promotion. Let Juwai help your with your listings before the foreigner property buying ban sets in.
Sources: 1. New Zealand Immigration: Buying or building a house in New Zealand; 2. Stuff.co.nz: Foreign buyers ban relaxed on apartments and for Singapore nationals; 3. Bloomberg: New Zealand passes law to crack down on foreign home buyers; 4. Express.co.uk: New Zealand Prime Minister announces foreign home buyer ban; 5. Go Rentals: The best places to live in New Zealand – 10 of our favourite destinations; 6. MasterStudies: Best schools and universities in New Zealand.