The move fulfils an election campaign pledge by the Labour Party-led government, which came to power last year.
David Parker, Minister for Economic Development said:
“We believe it’s the birth right of New Zealanders to buy homes in New Zealand in a market that is shaped by New Zealand buyers not by international price pressures.”
Previously the housing market was open to investors worldwide.
Opposition lawmakers have said the bill is unnecessary.
Judith Collins of the National Party commented:
“So this bill in many ways is like using a hammer to try and crush a teeny weeny little nut because it is about saying that every house, every residential house, is now apparently sensitive land,”
The new law fulfils a campaign pledge by the Labour Party-led government which came to power last year.
There are some exceptions to the new rules, including people from Australia and Singapore who will typically still be able to buy New Zealand homes thanks to existing free-trade agreements.
Foreigners who already own homes in New Zealand won’t be affected.
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