"We've found properties from Auckland to Invercargill that are being marketed to offshore speculators who have no intention of living here"
- Labour leader David Shearer
The Labour Party is criticizing the government of favouring overseas investors as it defends its new policy to restrict foreigners buying New Zealand property. This comes in response to a "housing crisis" in cities like Christchurch and Auckland, where demand is outstripping supply. Labour leader David Shearer said on Sunday that in case his party wins the elections next year, it will ban non-residents from purchasing any existing house, flat or apartment in order to reduce house prices, which spiked to record levels in Auckland due to increasing demand. Mr. Shearer says there will be some exceptions made for foreigners, who want to build houses, thus increasing housing stocks. The proposal could clash with the country's free trade agreements, including the multi-billion arrangement with China.
Mr. Shearer said that the move was one of the components of a packages of measures including a capital gains tax excluding family home, and a plan to build 10,000 affordable houses a year.
Green Party co-leader Dr. Russel Norman is supporting the move, and says that such policies are already used in Australia, Singapore and Hong Kong.
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