Chinese investment in NZ housing tipped to rise
Friday Oct 17, 2014
NZ house market will see more money once rules eased: economist
A BNZ-REINZ survey of real estate agents last year found residential property sales to foreigners accounted for 8 to 9 per cent of total sales. Photo / Peter Meecham
China’s plans to ease the restrictions its citizens face when investing overseas will result in increased Chinese capital flowing into New Zealand’s property market and contribute to rising house prices, says an economist.
The world’s second-biggest economy still has a relatively closed financial system, with strict capital controls meaning the sprawling nation – which accounted for 10 per cent of global gross domestic product in 2011 – has a less than 3 per cent share of global holdings of assets and liabilities, according to a Bank of England report.
The People’s Bank of China, which wants to promote international use of the yuan currency, last week outlined a plan that will allow Chinese nationals to invest in overseas property and stocks through a Qualified Domestic Retail Investor Scheme.