Ray White Chairman Brian White, says that New Zealand prime minister-elect Jacinda Arden’s recent decision to halt foreign investment in housing could benefit Australia.
New Zealand’s new coalition government has new restrictions on immigration and overseas property buyers.
Under the new rules, foreign buyers will no longer be able to purchase existing houses but can still buy new properties, a policy similar to the one introduced in Australia.
White said the move could push overseas buyers into Australian property.
“The amount of Chinese buying has been a huge political issue in New Zealand. It was the same issue we had four or five years ago,” he said.
White’s analysis was echoed by AMP Capital chief economist Shane Oliver.
“It puts New Zealand on the same playing field as Australia, which may see some money coming back to Australia,” Oliver said.
But Oliver added that the impact would be felt but wouldn’t cause a “new boom.”
Like Australia, New Zealand has seen housing prices surge in the past few years.
Arden was officially sworn in as PM on Thursday and leads a three-party coalition government consisting of Labour, New Zealand First and the Greens.
Source: The Australian