The real estate market closes to foreigners: the strange case of New Zealand
One of the most particular island states in the world, New Zealand, literally '' land of sea '' consists of two main islands and many other minor ones.
Separated from Australia by the sea of Tasman, in recent years it has been an impressive tourist wave, captained mainly by young people eager to learn a new language and by those who, tired of the usual life, decided to make a change and why no, even a breath of fresh air!
Although the capital is Wellington, the most populous city is Aukland with over 1.4 million inhabitants.
The latter became a '' super city 'from November 1, 2010, and took fourth place as the best quality of life and the 13th place as the greenest city in the world, without forgetting the 10th place as a metropolis more livable all over the planet.
In general the whole nation is taking on a new face.
There have been numerous urban planning interventions, without neglecting the famous ports that allow the construction of a greater network of economic but also cultural exchanges.
And that's not all!
To understand how much this land is so unique, just think that many celebrities and successful businessmen have chosen New Zealand to invest in real estate. But in all this there is a problem not really pleasant for potential investors.
The New Zealand government approved last year a law that will probably come into force in the autumn of 2019, to prevent foreigners from buying a property in this modern paradise. Except for the residents, the inhabitants of Singapore and the neighboring Australians, with whom there are very strong free-market relations, the New Zealand real estate market risks becoming a prerogative for a few.
But why this maneuver and above all, what advantages could be drawn from all this?
It should be noted that in the last ten years, New Zealand has seen house prices increase by 60% and in parallel the collapse of demand by local investors, surpassed by foreign ones.
Hence the need to protect residents at the expense of the international economy. To potential foreign buyers, this law will leave room for action on apartments in large condominiums but imposing a total ban on existing homes.
According to the New Zealand government, it was precisely this growing demand from foreign investors to increase the price of real estate, making them almost inaccessible to residents.
At present only one in four New Zealanders owns a house of their own and in recent years the residents who have had to adapt with garages or even cars and those who, in extremis has become a homeless person, have increased.
Obviously this maneuver has certainly not gone unnoticed, so much so that foreign public opinion has accused New Zealand of being xenophobic and, as if this were not enough, the International Monetary Fund has requested the government to modify the reform that, according to the forecasts economic conditions, could greatly slow down the general growth of the country.
We just have to wait for more news from this story that seems to be anything but positive for the world real estate market.
Separated from Australia by the sea of Tasman, in recent years it has been an impressive tourist wave, captained mainly by young people eager to learn a new language and by those who, tired of the usual life, decided to make a change and why no, even a breath of fresh air!
Although the capital is Wellington, the most populous city is Aukland with over 1.4 million inhabitants.
The latter became a '' super city 'from November 1, 2010, and took fourth place as the best quality of life and the 13th place as the greenest city in the world, without forgetting the 10th place as a metropolis more livable all over the planet.
In general the whole nation is taking on a new face.
There have been numerous urban planning interventions, without neglecting the famous ports that allow the construction of a greater network of economic but also cultural exchanges.
And that's not all!
To understand how much this land is so unique, just think that many celebrities and successful businessmen have chosen New Zealand to invest in real estate. But in all this there is a problem not really pleasant for potential investors.
The New Zealand government approved last year a law that will probably come into force in the autumn of 2019, to prevent foreigners from buying a property in this modern paradise. Except for the residents, the inhabitants of Singapore and the neighboring Australians, with whom there are very strong free-market relations, the New Zealand real estate market risks becoming a prerogative for a few.
But why this maneuver and above all, what advantages could be drawn from all this?
It should be noted that in the last ten years, New Zealand has seen house prices increase by 60% and in parallel the collapse of demand by local investors, surpassed by foreign ones.
Hence the need to protect residents at the expense of the international economy. To potential foreign buyers, this law will leave room for action on apartments in large condominiums but imposing a total ban on existing homes.
According to the New Zealand government, it was precisely this growing demand from foreign investors to increase the price of real estate, making them almost inaccessible to residents.
At present only one in four New Zealanders owns a house of their own and in recent years the residents who have had to adapt with garages or even cars and those who, in extremis has become a homeless person, have increased.
Obviously this maneuver has certainly not gone unnoticed, so much so that foreign public opinion has accused New Zealand of being xenophobic and, as if this were not enough, the International Monetary Fund has requested the government to modify the reform that, according to the forecasts economic conditions, could greatly slow down the general growth of the country.
We just have to wait for more news from this story that seems to be anything but positive for the world real estate market.
