New Zealand’s new Prime Minister, Jacinda Ardern, on Tuesday said her government would ban foreign investors from buying houses in the country by early 2018.
“We are determined to make it easier for Kiwis to buy their first home so we are stopping foreign speculators from buying houses and driving up prices,” the Labour Party leader said in a statement.
She said the government would introduce an amendment to the Overseas Investment Act to classify residential housing as “sensitive,” which means that only residents would be able to buy existing residential dwellings.
According to her, Australians will be exempted as there are New Zealanders in Australia.
A report said that New Zealanders have suffered a housing crisis in recent years.
Immigration record has led to a growing demand for housing, one that the country’s construction sector cannot keep up with.
Consequently, house prices have risen by 50 percent in the past decade while home-ownership has dropped to its lowest level in 65 years.