A Summary on the 2 Million Dollar Home
Election 2023
The National Party has pledged to overturn the foreign buyer ban for some homes if it wins the election in October. The ban was implemented by the Labour Party in 2018 to curb international buyers from purchasing properties ahead of local residents. National's proposal includes introducing a 15% foreign buyer tax on homes valued over $2 million, which is expected to generate $740 million in tax revenue annually. The ban would remain in place for homes valued under $2 million.
Key points-
Only 5% of residential properties in New Zealand are valued at $2 million or higher.
Queenstown-Lakes has the highest percentage of homes in the higher price bracket, with 29% of all residential stock.
Auckland has the highest number of properties priced over $2 million, while the West Coast has the fewest.
The policy is seen as good news for the high-end construction sector, especially in areas like Queenstown.
Economists believe that allowing foreign buyers to purchase properties over $2 million may affect the upper end of the market but won't impact the general housing market significantly.
Some experts suggest that sellers might price their properties just above $2 million to attract overseas buyers.
There is a debate about the potential impact of foreign buyers on the housing market, with some arguing it could increase supply and affordability while others express concerns about driving up prices.
Overall, National's proposal to overturn the foreign buyer ban for high-end properties has generated mixed opinions, with experts highlighting its potential effects on the luxury real estate market and the broader housing sector.