Who's buying New Zealand homes?

The first data has been released since the government began tracking foreign buyers of New Zealand homes in October, or at least requiring them to have an IRD number and NZ bank account.

Just 3% of home buyers between January and March had overseas tax residency.

Land Information New Zealand released the data this afternoon on property transfers and the tax status of buyers and sellers and says it is not a register of foreign ownership.

The figures reveal Chinese taxpayers bought 321 houses as did 213 Australian taxpayers 99 UK taxpayers, 51 US taxpayers, 36 Singapore taxpayers and 33 Hong Kong taxpayers. 

On the flip side, 441 Aussie taxpayers sold their New Zealand houses, while 93 UK taxpayers, 81 Chinese taxpayers, 81 US taxpayers and 39 Singapore taxpayers also sold their homes. 

LINZ chief executive Peter Mersi says tax residency is not the same as nationality. “A New Zealander living and paying tax in the UK who bought a house in New Zealand would be included in this information as having overseas tax residency."  

The data also shows 50% of house sales involved buyers who have only New Zealand tax residency; 37% involved buyers who did not need to provide tax information – the majority of these were New Zealand citizens or residents who were buying their main home; and 10% involved buyers who did not need to provide information because their sale and purchase agreement was signed before the new law came into force.

Mr Mersi says the data will help Inland Revenue ensure people are meeting their tax obligations. “To help find out more about property in New Zealand, buyers and sellers are also asked to provide information about their citizenship or visa status. This information has been skewed by the responses from trust companies and businesses.”

LINZ has removed trust companies and businesses for a clearer picture. This indicates that for properties where there’s a home on the land, 1089 transfers (3%) didn’t involve New Zealand citizens or residents.

“We will refine the guidance on responding to these questions so we can gain greater insight into who is buying and selling New Zealand property,” he says.

LINZ will release the data each quarter, with the next release planned for July.

Meanwhile ACT Leader David Seymour is calling on National to denounce its proposed land tax in the wake of the LINZ data.

“Confirmation that 97% of property sold in the last three months went to New Zealand tax residents shows the fuss over foreign buyers has been pure political scapegoating," he says

“It was bad enough when it was the opposition blaming house prices on foreigners. National should never have sunk to that level with its proposed land tax on foreigners.

Mr Seymour says the data gives National the chance to reclaim the moral high ground. "It’s time to put hysteria over foreigners to rest, and return to the basic mission of freeing up land and increasing housing supply.

“Blaming foreigners for our housing woes is easy. Tackling a bloated RMA and decades of entrenched red tape will take more spine.”

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