New Zealand to Ban Foreign Home Buyers

 

New Zealand plans to bar foreigners from purchasing existing homes.

The ban is expected to become law this year. It aims to slow the rising housing prices and protect New Zealanders interested in buying a home.

The Labour Party government believes that foreign investors¹ have pushed many possible first-time home buyers and families out of the housing market.

Last year, median housing prices across the country rose by 5.8 percent, to over $405,000.

Housing prices rose even more in New Zealand’s capital city, Wellington. Price there rose by more than 18 percent over a 12-month period that ended in June 2017.

The rising prices have pushed home ownership outside the reach of many possible buyers.

One home owner told VOA he feels sorry for the younger generation.

“I look at my children and my family and friends’ children, and I really, really feel for them because I just believe the market has made it impossible for them to get into the housing.”

Just 25 years ago, three out of every four New Zealanders lived in their own homes. Now the rate is 64 percent -- and falling.

The plan to ban foreigners from buying existing homes has yet to be approved. But the measure, called the Overseas Investment Amendment² Bill, passed its first reading in parliament in December.

Restricting foreign ownership of housing has been tried in other countries, including Switzerland, says Norman Gemmell. He is chair of public finance at Victoria University of Wellington.

"So, there is a sensible economic argument that says, if lots of foreign investors -- because there is money slewing³ around in the world looking for a good home -- if lots of these foreign investors are looking to put their cash into New Zealand, if it then forces up the price of property so that people cannot afford to live anymore, you should think about what is the right way to allocate⁴ your domestic housing stock.”

Critics say foreign investors have had only a small effect on the cost of housing. Low interest rates, limited supply and immigration have also driven up house prices.

New Zealand’s trade minister David Parker says the restrictions⁵ are not just about price, but fairness.

“I am not targeting any one individual. I'm trying to protect New Zealanders against some of the excesses of global capitalism⁶.”

Chinese investors have been among the biggest foreign buyers of property in New Zealand.

Political commentator⁷ Bryce Edwards says the ban is a sign of both intolerance in the community and concerns about capitalism.

“There is much more focus on inequality, and so there has been a lot more focus on wealthy individuals as the problem. And there is an ethnic⁸ element to it as well that is perhaps xenophobic or even racist⁹. You know, there has been a great increase in Asian wealth coming to New Zealand and, regardless of whether it is investing here or moving here to live, New Zealanders are a bit more suspicious of that.”

Housing prices continue to make solid gains across the country. And for many New Zealanders, the dream of owning a home is as distant as ever.

I'm Ashley Thompson.

Words in This Story

median – n. the middle value in a series of numbers

slewing – v. to turn or slide in another direction very quickly

cash – n. money

afford – v. to be able to pay for

allocate – v. to divide and give out

intolerance – n. a refusal to accept the rights of other people

xenophobic – adj. someone who is fearful or what is foreign or foreigners

1 investors   

n.投资者，出资者( investor的名词复数 )

参考例句：

• a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
• a cash bonanza for investors 投资者的赚钱机会

2 amendment   

n.改正，修正，改善，修正案

参考例句：

• The amendment was rejected by 207 voters to 143.这项修正案以207票对143票被否决。
• The Opposition has tabled an amendment to the bill.反对党已经就该议案提交了一项修正条款。

3 slewing   

n.快速定向，快速瞄准v.（尤指在协议或建议中）规定，约定，讲明（条件等）( stipulate的过去式和过去分词 )

参考例句：

• Slewing bearings are basic components widely used in construction machinery industry. 回转支承是工程机械行业的重要基础件。 来自互联网
• It is used for the crane slewing bearing. 这是用于起重机的回转支承。 来自互联网

4 allocate   

vt.分配，分派；把…拨给；把…划归

参考例句：

• You must allocate the money carefully.你们必须谨慎地分配钱。
• They will allocate fund for housing.他们将拨出经费建房。

5 restrictions   

约束( restriction的名词复数 )； 管制； 制约因素； 带限制性的条件（或规则）

参考例句：

• I found the restrictions irksome. 我对那些限制感到很烦。
• a snaggle of restrictions 杂乱无章的种种限制

6 capitalism   

n.资本主义

参考例句：

• The essence of his argument is that capitalism cannot succeed.他的论点的核心是资本主义不能成功。
• Capitalism began to develop in Russia in the 19th century.十九世纪资本主义在俄国开始发展。

7 commentator   

n.注释者，解说者；实况广播评论员

参考例句：

• He is a good commentator because he can get across the game.他能简单地解说这场比赛，是个好的解说者。
• The commentator made a big mistake during the live broadcast.在直播节目中评论员犯了个大错误。

8 ethnic   

adj.人种的，种族的，异教徒的

参考例句：

• This music would sound more ethnic if you played it in steel drums.如果你用钢鼓演奏，这首乐曲将更具民族特色。
• The plan is likely only to aggravate ethnic frictions.这一方案很有可能只会加剧种族冲突。

9 racist   

n.种族主义者，种族主义分子

参考例句：

• a series of racist attacks 一连串的种族袭击行为
• His speech presented racist ideas under the guise of nationalism. 他的讲话以民族主义为幌子宣扬种族主义思想。