In the June 2020 quarter, the number of home transfers fell 30 percent, but the proportion of home transfers to people who didn't hold New Zealand citizenship or a resident visa was steady at 0.4 percent, Stats NZ said today.
Over 26,000 homes were transferred during the June 2020 quarter, down 30 percent from almost 38,000 in the June 2019 quarter. The decrease began as the COVID-19 level 4 lockdown took effect on 26 March 2020 and eased as level 3 took effect on 28 April.
The number of home transfers in the June 2020 quarter is the lowest since the series began in 2016.
The proportion of home transfers to people who didn't hold New Zealand citizenship or a resident visa has been between 0.4 and 0.6 percent per quarter since early 2019.
"Just over 100 homes were transferred to overseas people in the June 2020 quarter, down 44 percent from the June 2019 quarter," property statistics manager Dave Adair said.
"However, the proportion of overseas buyers was steady at 0.4 percent, as total home transfers fell over the same period."
"In the June 2020 quarter, areas with the highest number of overseas home buyers continue to be Waitematā local board (Auckland inner city) and Queenstown-Lakes district," Mr Adair said.
While the overall number of home transfers in Queenstown-Lakes district fell almost a third in the June 2020 quarter, the proportion of home transfers to people who didn't hold NZ citizenship or a resident visa held up at 4 percent.
June quarter drop in home transfers varied by region and buyer type
In the June 2020 quarter, compared with the June 2019 quarter, the number of home transfers fell across all regions and for most buyer types by affiliation to NZ.
Total home transfers fell 30 percent nationally, with regional falls ranging from 23 percent in Auckland to 39 percent in Gisborne.
The fall in the total number of home transfers also varied by buyer type, with larger decreases in the two smallest groups:
- at least one NZ citizen - down 31 percent to 20,955
- corporate - down 27 percent to 2,919
- at least one NZ resident visa (but no citizens) - down 42 percent to 2,289
- no NZ citizens or resident visas - down 44 percent to 102.
Frequently asked questions
How many 'foreigners' are buying New Zealand homes?
It depends how you define 'foreigner'. In the June 2020 quarter, of all home transfers:
- 80 percent were to at least one NZ citizen
- 11 percent were to corporate entities only (which could have NZ or overseas owners)
- 8.7 percent were to at least one NZ-resident-visa holder (someone who can live and work in New Zealand for as long as they like)
- 0.4 percent were to no NZ citizens or resident-visa holders.
When we talk about transfers to 'overseas people', we mean the 0.4 percent of transfers where none of the buyers were NZ citizens or resident-visa holders (excluding transfers where all the buyers were corporate entities). We focus on this measure because it aligns most closely with the definition of 'overseas person' in the Overseas Investment Act 2005.
Where are 'foreigners' buying New Zealand homes?
In the year ended June 2020, the areas with the highest number of home transfers to people without NZ citizenship or resident visas were:
- Waitematā local board (Auckland inner city) - 195 home transfers (5.1 percent)
- Queenstown-Lakes district - 57 home transfers (3.4 percent).
What is the net change in 'foreign' ownership of New Zealand property?
We don't produce a measure of the net change in property owned by overseas people.
If you subtract seller statistics from buyer statistics to calculate a net change in home ownership, it is important to note that:
- between the time of buying and selling a home, owners can move between affiliations (for example, a work-visa holder could become a resident-visa holder or NZ citizen)
- some types of affiliations may sell many newly built homes (for example, corporate entities)
- some properties don't include a home at the time of one transfer, but do include a home in a later transfer.
Therefore, net changes for a given affiliation could be understated or overstated.
What about the Overseas Investment Amendment Act 2018?
The Act affects contracts signed from 22 October 2018. As transfers are not counted until completed, it was more obviously reflected after the December 2018 quarter statistics.
The Act prevents most people who don't hold NZ citizenship or a resident visa from buying residential property in New Zealand. For further information see Overseas Investment Amendment Act 2018.
Why is the number of home transfers to overseas people not zero?
The number of home transfers to overseas people may never be zero due to Overseas Investment Amendment Act 2018 exemptions (for example, some new homes, and Australian and Singaporean buyers).
Some contracts signed before 22 October 2018 could take many months before they are completed and counted in these statistics. Apartments bought off the plans might not be transferred to an overseas buyer until construction is complete years after the contract was signed.
How many of the corporate entities have 'foreign' owners?
Information on the ownership of corporate entities (by New Zealanders or overseas people) is not currently available, as it is not collected on land transfer tax statements.
How much New Zealand property is owned by 'foreigners'?
We do not currently have a register of property owned by overseas people. These property transfer statistics measure overseas involvement in property transfers in any given quarter, but not the total amount of property owned by overseas people.
Can transfers of bare residential land be identified in these statistics?
No, we can't currently identify bare residential land in these statistics, but it is included, along with homes, commercial, and other land, in total property transfers.
Are overseas investment laws being enforced?
The Overseas Investment Office administers NZ's overseas investment laws.
Decision summaries and statistics has information on applications by overseas people to buy New Zealand property.
Enforcement action taken has information on enforcement where overseas people have bought property without appropriate consent or not met the obligations they made when they applied for consent.
How does Australia record 'foreign' buyers?
The Australian Foreign Investment Review Board (FIRB) reports on approvals of purchases by overseas buyers.
For further information see Foreign Investment Review Board (FIRB) 2018-19 Annual Report.
Why do you talk about 'transfers' not 'sales'?
A transfer is not the same as a sale. Transfers often involve a sale, but there are many other possible reasons for a transfer (such as marriage settlements, boundary changes, trustee changes, and changes in the share of ownership).
Every sale is a transfer, but not every transfer is a sale. We refer to the parties involved as buyers and sellers for simplicity.
We know the number of transfers to overseas people because this information is collected on land transfer tax statements, which cover all types of transfer and not just sales.
Text alternative for Home transfers by buyer citizenship or visa status, June 2018 to June 2020 quarter
This stacked column graph shows the number and percentage of home transfers by buyer citizenship or visa status (at least one NZ citizen, at least one NZ-resident-visa-holder but no citizens, corporate only, and no NZ citizens or resident-visa holders). Also indicated is on 22 August 2018 the Overseas Investment Act (OIA) amendment got Royal assent, and on 22 October 2018 OIA amendment came into force.
Data for this graph is available in table 1 of the Excel file available under Download data on Property transfer statistics: June 2020 quarter.
