PHOTO:SUPPLIED Sharon Zollner: “It might seem like a far-fetched concept here in New Zealand with our chronic housing shortages, a sharp increase in housing supply is not everywhere and always a good thing, in the big picture.”
Changes proposed to restrictions coming on foreign buyers may go too far and risk exposing New Zealand to a dangerous over-supply of housing, an economist says.
There had been concerns that proposed changes that would restrict the sale of New Zealand property to foreign investors would restrict the supply of new housing in this country.
The Overseas Investment Amendment Bill originally would have required foreign who bought apartments off plans to sell them once the building was complete.
Many developers rely on off-the-plans sales to foreigners to give them enough capital to fund their developments.
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