David Seymour labels watered down foreign buyers bill a 'dog's breakfast' of inconsistencies

Act Party leader David Seymour has slammed the Government's watered down bill to ban foreigners buying New Zealand homes as "a dog's breakfast of inconsistent amendments".

The Overseas Investment Amendment Bill has this week been softened, with some multi-storey apartment buildings now being exempted from the ban.

Mr Seymour asked Trade Minister David Parker in Parliament if the process of the bill was subject to any time pressure due to the need to pass it before the new Trans-Pacific Partnership trade agreement, the CPTPP, is ratified.

Mr Parker confirmed it was subject to time pressure.

"Is that why it's such a dog's breakfast of inconsistent amendments now?" Mr Seymour shot back.

Mr Parker denied that was the case.

"It's actually quite a complex bill because we don't want to, in Auckland, stop some foreign direct investment in multi-storey apartment buildings that are going to be on-sold or leased," the Minister said. 

"That is probably the most important change that has been made at select committee. 

"But it remains true that a foreigner will not be able to buy any existing home in New Zealand, and more than 99 per cent of New Zealand homes will not be open to purchase," he said.

Developers have been concerned about not being able to complete big projects if they can't sell individual apartments to foreign buyers.

Under the new regime, overseas investors will be able to invest in new housing, particularly apartments, new rentals, and homes available to purchase under rent-to-own or shared-equity arrangements.

Australian and Singapore citizens and residents will be treated the same as New Zealand citizens and permanent residents, for the purposes of the foreign buyer ban.