Who Is New Zealand’s Largest OffShore Real Estate Investor?

New Zealanders love all things property  and owning our own home is goal for the majority of us.  You are reading our blog probably due to your interest in property investment too.  The media talk a lot  about foreign ownership of New Zealand and in particular real estate and the perception is not the reality.

According to a news item on NZ Herald 70 percent of foreign ownership of New Zealand investments is from US, Australia and Europe and of the total offshore investment by value only 5 percent is in Real Estate.

BNZ Chief Economist Tony Alexander says that the latest BNZ and Real Estate Institute residential market survey figures show that offshore buyers account for only 8% of all residential house sales in New Zealand.

And of that percentage, 16% were from the United Kingdom, 15% from China, 14% from Australia, and 12% were from other Asia countries.

Source

While the percentage rate is low now Tony Alexander says we can expect it to rise over the coming years.  What this may suggest to property investors is there will be more competition and the off shore buyers may have deep pockets so pick your investments carefully.

From the same article -

Alexander is calling on the Government to adopt Australia’s foreign ownership model, which dictates that anyone without permanent residency must apply to buy property and can only purchase ‘off the plan’ new builds or build their own houses.

With a very healthy target of 39,000 new homes over 3 years for the Auckland region there may be plenty of completion for these homes should our Government follow the Australia foreign ownership model.

New Zealand property investors may end up with just their fellow countrymen and women as competitors on the typical buy and hold second hand homes.

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