“Interest in Kiwi homes from the United Arab Emirates has increased sharply in the weeks following National’s proposal to lift the foreign buyers ban on high-end homes”
National was going to allow foreign investment into the housing market??? Yeah, that’s really going to help with our crises. I get it’s only ‘high-end homes’ but more buyers inevitably means less supply.
‘high-end homes’ but more buyers inevitably means less supply.
Supply stays same, demand increases.
It also means more well paying jobs, our building industry is one of the most NZ based of all our industries, not only are the workers NZers, but a huge amount of our materiels are also made here.
Whilst true, but the time lag between increase demand and new supply being available. That time lag can be quite large and thus foreign buyers will inevitably drive prices up.
With housing demand being very inelastic, more demand simply increases prices.
For a short period of time, yes.
Lol, are Sotheby’s not part of the real estate industry that has been donating quite heavily to National this cycle?
Meanwhile news from China is that their middle class are desperately trying to sell off foreign houses due to the state of their economy. They’re mostly in SEA, but if the middle class are struggling their rich folk might not be doing great either.
I know things are heading downward quite fast in China. I wonder if selling off investments here will change the market much
This is bad news for all the struggling working class kiwis looking to buy a two million dollar property.
When the people who would have bought $2m properties get blown out of the water by foreign buyers, theyll look to lower priced categories. This is how this will drag house prices up overall.
