Will Phil Twyford, Rob Salmond and Andrew Little apologise now

The facts are in and the supposed crisis in Auckland housing caused by people with chinky sounding names is actually non-existent.

Highly-anticipated new Government data shows that three per cent of New Zealand homes were bought by non-resident buyers in the last three months.

That amounted to 1089 homes which were sold to people who were not New Zealand citizens or a holder of a resident, student or work visa between January and March.  

Chinese tax residents were the biggest buyers, snapping up 321 of those properties (29.5 per cent), followed by Australians on 312 properties (28.6 per cent).

In Auckland, the level of foreign investment was slightly higher than the national level, at 4 per cent, or 474 properties. Nearly 60 per cent of these properties went to Chinese tax residents.

The data was revealed this afternoon by Land Information New Zealand (LINZ) and is the first snapshot of the level of non-resident activity in the housing market.

Three percent? that means that 97% of houses were bought up by Kiwi buyers.

Another Labour lie busted.

Andrew Little, Rob Salmond, Phil Twyford and Labour should be begging for forgiveness.

 

– NZ Herald

 


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  • shykiwibloke

    These three would make good weather forecasters:- ignore previous wrong predictions and carry on as though they are always right. If questioned, have a couple of technical sounding reasons that basically blames anything but the real cause of any discrepancy.

    • Wheninrome

      Yes, they wouln’t say occasional showers but mainly fine, their report would read thunderstorms, hail and wind, outlook, more of the same.

  • Cadwallader

    Given her performance with Tony Alexander last night while filling in for Larry Williams, Ms (Holier than Thou) Smalley ought to apologise too.Tony Alexander is well respected and deservedly so. He did not deserve what passed for an interview from this stupid woman. Ms Smalley is a dim-wit with self-perceptions which far exceed her minimal abilities.

    • jonno1

      Strong is the Dunning-Kruger effect in that one. In fact, a text-book case.

  • andrewo

    Bear in mind some of those 321 properties bought by “Chinese tax residents” probably includes some NZ citizens who are currently working over there.

    • Ross

      It’s an interesting point.. how many NZ citizens fit under the category of foreign tax residents? It would certainly dilute that group even more.

  • Karma

    Given his preferred PM rating, Andrew Little should be begging for mercy, not forgiveness.

  • Isherman

    Speaking on ZB with Smalley yesterday Twyford had the gall to say this report (with it’s admitted limitations) was “not worth the paper it’s written on”, like his own report on chinky sounding names somehow was? The problem for Andrew Little leaving this portfolio with Twyford is that it is now permanently tarnished by him, and the only way to rinse that would be a re-shuffle, but what are the chances?

    • Boondecker

      You just mentioned three people who no longer hold any credibility on this subject. Not that they did at the start of or during it either.

      This was purely based on easy-to-get xenophobic headline seeking by a desperate political party seeking relevancy and impact through compliant media with a somewhat frustrated house buying public.

    • CheesyEarWax

      Classic of not engaging brain before opening mouth for Twyford. Look out for the next portfolio reshuffle from Andy.

      • roxo

        Twyford is rated at 4 ! He will not go anywhere as he is doing such a great job.

        • OneTrack

          He is doing better than anybody else in Labour.

    • Observer

      They should just address the fundamental issue, which is that high inward migration which outpaces supply leads to an increase in prices. Reserve Bank modelling shows a 1% population increase is linked to about a 10% house price rise.

      It’s not just happening in Auckland, you could look at Sydney, Vancouver and San Francisco as other examples. With a degree of uncertainty about markets in China and problems like pollution there is a large inflow of people and investment into these residential property markets & unsurprisingly prices are going up (except in places where there is scope for supply to expand).

      • zanyzane

        Migrants is a replacement policy. The problem is that the replacement migrants come through a single international airport ie Auckland

    • Aucky

      Who would want that poisoned chalice?

      • Isherman

        You would be careful not to give such a highly charged portfolio to anyone too smart if you were Andy (not that that should be a problem) because if they did a half reasonable job of addressing the actual issues, they might become more respected than the leader…and on 7% that could pose a problem for his current job.

  • Rebecca

    Interestingly these stats are taken during the period of major delays in issuing tax file numbers to overseas investors – the next 3 months when the market picked up will make more interesting reading

    • zanyzane

      If you are not buying Auckland property you are clueless. Any developer with any money is buying Auckland property due to the Unitary plan changes coming.

  • RD

    and how many of the sellers were also non-resident, and exiting the NZ housing market? There seems to be an assumption that all sellers are NZ residents, and the transfer to foreign ownership a one way process. For the true picture, both buyers and sellers need to be assessed – is anyone looking at this?

    • Rebecca

      Gets my vote
      What is it they say – lies , dam lies and statistics
      Certainly what has been presented is pretty weak data – but good if it shuts Labour up for a while

      • Rebecca

        It appears there are two Rebeccas here. Hello, Rebecca. ;-)

        The New Zealand data is problematic by LINZ’s own admission. The reports are based on a questionnaire asking for IRD number and for details of any foreign tax residency, as well as citizenship or visa status.

        This creates a problem for all the properties bought by trusts or NZ Ltd companies. These, by definition, have no citizenship or visa but always are NZ Tax resident. Unless the trust or Ltd registers for foreign tax, this is a NZ tax resident purchase.

        As I noted elsewhere, this means that Kim Jong-un could pay $45 to set up a NZ Ltd that can buy every property for sale in Auckland as a NZ Tax resident.

        Next, it appears that LINZ has excluded purchases by trusts or companies in the interests of “clarity.”

        My expectation is that this “clarity” seriously reduces the reliability of the data, depending on how many purchases are by trusts and companies.

    • zanyzane

      The numbers come from IRD. Linz data is based on tax residency collected from IRD.

  • Keanne Lawrence

    Apologise for a beat-up hit job? Your Dreamin’. The backlash is the best part of every crack of their whip and while they are dizzy from so much swinging they remain confused between up and down.
    They remind me of the flax whips we made back in the day which sounded great on the day but didn’t last so another one was made when needed. The similarity goes deeper than just the crack since the flax is slip from the handle portion and plaited with a single extension added for the crack.
    On reflection this might have been the thing that prompted the term “flax roots” when they began searching for the missing million?

  • Observer

    The issue goes back to a market rigged by land supply restrictions and New Zealand’s huge inward migration programme – 3 times per capita what the US has. If National or Labour are serious about house prices they would reduce the inward migration target from 50,000 (last year was a record 67,000), to about 25,000 to ease demand?

    “From 1991 to 2013, non-New Zealand citizen immigration accounted for around 71 per cent of the change in the number of households (or dwellings required). For the last two intercensal periods the contributions of non-New Zealand citizen net immigration were as follows:

    •2001 to 2006 70 per cent

    •2006 to 2013 106 per cent

    https://croakingcassandra.com/2015/06/23/immigration-policy-106-per-cent-of-net-new-housing-demand/

    • zanyzane

      Michael Riddell is a anti migrant who ignores facts. Firstly actual real migrants is only 14k a year gross It does not include migrants that leave NZ. The government aims for 50,000 so the rest is offered to international students and foreign workers already double counted as Permanent and Long Term migrants when they first arrive. You are mixing the numbers up. 67,000 is net PLT and includes gross real migrants of 14k but also includes international students and foreign workers and tourists and returning kiwis

  • Anthony

    3% might not be completely accurate but its not 39.5%. Its not the problem. The Labour led council is the problem.

    • zanyzane

      It is not foreigners that are buying. It is foreign money available to NZ residents that is buying. Also looking closely at the Unitary Plan changes, Fletcher Residential name comes up a lot in the amendment documents. Therefore there is also a lot of institutional funds in the market buying

    • OneTrack

      The Labour led council with their ideology of a compact city with peons living in apartment buildings above railway stations that is the problem.

      I notice Len and co don’t live in such apartments. That’s for “other people” aka the peons.

  • Mark

    No its not necessarily 97% from Kiwis. There’s foreign student, businesses and trusts which were not recorded

  • oldmanNZ

    i guess in Labour eyes, a chinese, weather NZ born, or a permenant resident is a foreigner.

    Just like Mojo explanation that a UK trust is not foreign, but a chinese one is.

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