Statistics NZ reveal that in the year ending June 2018, a mere 0.6% of houses sold in the Napier /Hastings area were sold to non NZ residents (27 houses in total). Our observation is that foreign investors tend to operate in the top end of our market where the numbers of sales are constrained (in July and August this year, only one house sold in Napier for more than $1 million).
The amendment to the Overseas Investment Act 2005 that will prevent non-NZ residents buying residential property comes into force on 22 October 2018. How exactly the Act will affect the market remains to be seen. Whereas its impact on first home buyers may be minimal, those trying to sell a top end property may face some headwinds as the ban takes effect, both directly and from the trickle-down as the Auckland market (in which 6% of sales are to non-residents) cools.
Here is some of the detail behind the Act, courtesy of fellow Law link firm Anderson Lloyd.
Langley Twigg's team of Hawke's Bay lawyers keeps you up to date on all the latest legal news.
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