“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.
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.