Labour's new housing policy blocking purchases of existing properties by overseas buyers not planning to live in New Zealand is not for the Bay of Plenty, according to a Tauranga realtor.

The Labour policy to prevent non-residents except from Australians from buying homes is believed to be an attempt in dampening the escalating demand in the property market.

Realty Services Group chief executive Ross Stanway says Labour's restrictions on foreign home buyers is not for Tauranga.

'House prices in Auckland have risen 28 per cent since June 2009. The problem is clear – there are just not enough affordable homes. And overseas speculators are adding to the problem.

'That's why the next Labour government will introduce restrictions so that non-residents will not be allowed to buy any existing house, flat or apartment,” said Labour leader David Shearer.

But owner of Tauranga's Eves Realty and Bayleys, Realty Services Group, chief executive Ross Stanway is adamant the principle of trying to sort what is quite clearly an Auckland and Christchurch property market issue with a broad brush national scheme is totally flawed.

He adds the same argument applies in imposing higher deposit requirements on all home buyers in reducing the two cities property woes 'it's not a New Zealand problem. It's an Auckland and Christchurch problem so solve it there.

'Why should good intentioned people who don't have to have been born in New Zealand but who meet all the legal requirements to be here, why should they be denied from participating in the market?”

Instead of attempting to fix the demand side of the property market, a more proactive approach would be increasing supply with more houses, says Ross.

'Both of them try and dampen the demand side of the demand and supply situation. I would have thought it would have been better solved on the supply side rather than try and dampen demand.”

David says many other countries including Australia, China, Singapore and the UK target overseas speculation in housing. He adds New Zealand's lack of regulation is leaving the door wide open for international speculators.

Inland Revenue Department figures show more than 11,000 overseas investors own properties here that they do not live in, says David.

'An estimated 2600 homes were bought last year by offshore property speculators that had no intention of living here. That's a big chunk, given that just 4700 new homes were built in Auckland last year.”

What do you think? Should foreigners not living in NZ be allowed to purchase NZ property?

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