Booming New Zealand Housing Market Blamed on 'Busload of Australian Women'
By Reissa Su | May 12, 2014 3:57 PM EST
A "busload of Australian women" was identified as the reason for the increase in the sales of New Zealand's housing properties. The debate about foreigners owning more of New Zealand property has taken another twist in a televised panel discussion between minor political parties. Talks became heated when the issue was raised regarding policies restricting foreign ownership were motivated by racism or not.
John Minto from the Mana Party had led the protests in New Zealand against apartheid in South Africa during the 1980s. United Future leader Peter Dunne said the issue of foreign ownership was pointing to a "certain category of people" as the reason. Mr Dunne said to think about the historical context of the claims to which Mr Minto replied as "rubbish."
He said it's "a disaster for New Zealand" when a bus full of Australian women drive around the country and bought 2 to 3 houses each before getting on a plane. The buying activity will reportedly drive house prices up.
House prices up in New Zealand
In April, house prices rose 8.4 per cent, according to New Zealand government agency Quotable Value. The Reserve Bank of New Zealand has raised interest rates twice. To slow down the housing market, the RBNZ has also introduced a limit on loan-to-value on high debt lending.
Despite the struggle to control house prices, New Zealand's growth forecasts in the past six months continue to increase due to strong exports, post-earthquake reconstruction and export growth.
The IMF has upgraded its economic growth forecasts for New Zealand in the last six months. The agency expects the New Zealand economy to grow at 3.3 per cent in 2014 and three per cent in 2015. The previous growth forecast was at 2.4 per cent.
According to Reuters, New Zealand's house prices continues to increase and have reached a new record-high in April. The sharp rise for the third consecutive time has led to a drop in the number of houses sold.
The Real Estate Institute of New Zealand said the decline in house sales volumes especially in lower-priced properties was affected by the central bank's restrictions on low deposit lending and the beginning of the interest rate cycle.
To contact the editor, e-mail:
Most Popular Slideshows
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
- NFL Thursday Recap - Denver Broncos 35, San Diego Chargers 21: Peyton Manning Has 3 TDs In Easy Win [PHOTOS]
- 2014 MLB World Series Game 3: Kansas City Royals 3, San Francisco Giants 2 [PHOTOS]
Join the Conversation
- Australia's Low Birth Rate May Be Due to Low Confidence in Economy
- Fears Of Infection Spread Prompt Some US Hospitals To Refuse Ebola Patients
- Readers Slam a Book Showing That US Wealth And Power Rests on Slave Labour
- LG G Watch R To Be Available Globally Starting With Europe, North America And Asia Through Retail Sites And Play Store
- Young Teen Fighter Says ISIS Uses Drugs On Suicide Bombers To Get Them Perform The Act
- Xiaomi Redmi 1S vs. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- Verizon Motorola Droid Turbo Leaked Live Images Surfaces, Scheduled To Get Unveiled On Oct 28
- Update HTC One M7 with LG G2 with Android 4.4.2 as Sprint OTA: Fixes and Installation
- U.S. Targets Buyers of ISIS Oil, Threatens Sanctions
- ISIS Syria Airstrike Bombing Has Killed 550 People, Civilians Included
- Russia Blocking OSCE Monitoring Of Its Border With Ukraine
- Russia Slams US 'Double Standards' In The Fight Against ISIS