Now that the New Zealand Government has produced statistics showing a low overall investment in New Zealand residential property by overseas investors, but investment that’s concentrated in specific areas, Chinese international real estate website Juwai.com has weighed into the argument.
Juwai, proclaiming its importance as the exclusive international real estate partner to Chinese online giant Tencent Holdings Ltd, which also operates the WeChat social media site, has used the figures out yesterday to portray a ban on foreign buying as a poor policy for New Zealand to adopt.
You can see this as either a veiled threat or an explanation of reality.
Juwai.com chief executive & director Carrie Law said: “Foreign buyers are important, useful, even vital without being a problem — I think that’s what the data shows.
“Foreign buying tends to be focused where there is lots of new development, making clear again that foreign investment leads to the creation of new dwellings. That’s vital in a market with a housing shortage.
“This data shows that the Government’s plan to ban foreign buying could make worse the housing shortage it is supposed to fix. By discouraging foreign buying, the Government could turn off the flow of money that helps fund new construction in New Zealand.
“Let’s take a moment to appreciate all the benefits of the New Zealand-China relationship. China accounts for 20% of Kiwi exports, delivers $800 million/year in international student spending and provides $1 billion/year in tourist spending, besides funding the construction of new housing.
“Foreign buyers account for about one 10th the number of transactions by local investors. If anyone is driving up prices, it’s your rich dad & uncle, not rich Chinese.”
About Chinese buyers
Ms Law said Juwai statistics for the whole of 2017 showed what Chinese buyers wanted.
“75% of our buyers in New Zealand tell us they are purchasing for their own use. A good school area is a top request for 8% of them. New Zealand is their most favourite country in the world, after the US, Australia, Thailand, Canada & the UK.
“The top cities for Chinese buyers are Auckland, Christchurch, Wellington, Queenstown & Hamilton.”
Juwai showcases 2.8 million listings from 90 countries.
Related story today: 3.3% of March quarter home buyers were foreigners – but 18.7% in central Auckland
Attribution: Juwai release.