The new rules around foreign home buyers are "more symbolic in terms of the effect" it will have on Kiwis, says Property Institue CEO Ashley Church.
Mr Church said on TVNZ1's Breakfast this morning the new measures won't have a short term impact on New Zealanders, but could contribute to the construction of new homes in the next five to ten years.
Ashley Church says the new rules aren’t a ban, it’s a redirection of investment.
"It's not a ban, it's a redirection of investment," he said.
"Foreign investors who want to invest in New Zealand residential property they can still do so, but they've got to invest it in the construction of new buildings. That's a good thing for the economy, with 40,000 houses in Auckland required almost straight away."
The policy is aimed at stopping overseas speculators from pushing up house prices.
Yesterday Prime Minister Jacinda Ardern announced foreign speculators will no longer be able to buy houses in New Zealand from early next year.
"Kiwis should not be outbid like this," she said.
"That is why we are introducing an amendment to the Overseas Investment Act to classify residential housing as 'sensitive'."
This means non-residents or non-citizens cannot purchase existing residential dwellings. Australians will be exempt as New Zealanders are in Australia.
However the 2016 research from Land Information New Zealand showed only 3 per cent of New Zealand homes were being bought by people overseas, from the beginning of March to the end of June.
He said in the short term the new measures would have "very little impact" due to the low numbers of foreign buyers and "the market is actually pretty flat right now".
"But in the longer term…in respect of this and a number of other measures Phil Twyford is putting in place, this is a contributor to what I hope the construction of new homes over the next 5-10 years."
He was asked what the impact would be on first home buyers.
"Almost none. This is probably more symbolic in terms of the effect we're going to have."
SHARE ME