National’s election policy it will end the foreign buyer ban, for some homes, will reap massive dividends for Queenstown.
Labour’s Overseas Investment Amendment Act, aimed at improving housing affordability for Kiwis, came into force in October, 2018.
Since then, only New Zealanders, Australians and Singaporeans have been able to buy houses or sections less than five hectares in size in this country.
Other nationalities’ only lifeline has been if they can obtain, or commit to obtaining, New Zealand residency.
One exception is for managed apartments or approved complexes of 20-plus units, which some non-residents have been allowed to buy into, but not occupy.
The ban’s long been a discussion point in the resort, many believing it’s done nothing to help with affordability, and has had negative impacts on the construction sector, and community.
On Wednesday, National leader Christopher Luxon and finance spokeswoman Nicola Willis announced the party’s tax policy, which includes a Foreign Buyer Tax, estimated to rake in about $700 million, while they’ll keep the foreign buyer ban only for homes worth less than $2m.
Homes worth more than that can be sold to overseas buyers, under their proposal, but they’d be taxed at 15%.
Former mayor Jim Boult, who submitted on the draft proposal in 2018, tells Mountain Scene the announcements are ‘‘sensible’’ and will change the game for Queenstown.
‘‘I don’t think this did anything for the affordability of houses for Kiwis in Shotover Country, Lake Hayes Estate or Hawea subdivisions.
‘‘Foreign buyers aren’t buying in those areas, [they] are coming into our market buying high-end properties and making significant contributions to the district.’’
He notes when he was looking for ‘‘philanthropic donations’’ while he wore the mayoral chains, overseas investors were his first port of
call and Americans, in particular, ‘‘were the first people to put their hands in their pockets’’.
On the tax, he says he’d like proceeds from that to go to ‘‘affordable housing for Kiwis’’.
National’s former Southland MP Hamish Walker, who’s now director of high-end real estate firm Walker and Co Realty, tells Scene he’s personally sold more than $82m of real estate this year, with an average sell price of over $4m.
Walker says his phone was going ‘‘non-stop’’ on Wednesday with people who’ll benefit from the proposed change in Queenstown, particularly those disadvantaged when the ban came into effect.
‘‘There is a huge amount of people who service high-net individuals that benefit from having these types of people owning property here in our community.’’
Builder Allister Saville, a leader in the high-end residential construction sector over the past 30 years, says, on average, 75% of their builds over that time have been for overseas clients.
‘‘This announcement is great news [for] Queenstown and the wider construction community — that filters down to the community in general.’’
Walker says he’s reflecting on the late Sir Eion Edgar, who ‘‘rallied passionately’’ against the Bill and the consequences of it.
National’s proposal is almost exactly what Edgar proposed in February, 2018.
At the time he told Scene the easiest way to address concern about foreigners squeezing out first-home buyers was to limit overseas buyers to properties above $2m or $3m, which first-home buyers won’t be interested in.
