Do Foreign Buyers Push Up Prices?

There is no doubt that buyers from overseas  are active in the market but their influence is not as great as it might appear. I attended several auctions  lately and bidders where all from over the place.

Foreign buyers were certainly active but they has fierce competition from locals and the results were mixed.

But so what? Somebody paid for a property but somebody received the money  so it gets spread around. I think we have a bit of xenophobia making the rounds.

Some of the Left Leaning Loony Lot think we will all end up in shacks  or tents by the road side, while “The Foreigners” will own everything else.

What a lot of nonsense!

If you have been to an auction lately tell me what your experiences were.

 

Foreign buyers fuel house boom
By Anne Gibson
May 3, 2012

Wealthy foreign buyers are coming to New Zealand and paying top dollars for homes – fuelling fears they are contributing to skyrocketing property prices around the country.

Real estate agent Graham Wall said he had two deals to sell Mission Bay houses to Chinese and he is to travel to Shanghai at the end of the month to drum up further interest.

“Why we are getting record prices for Auckland, Hawkes Bay and Queenstown houses is that people outside New Zealand can see its worth,” he said.

Chinese buyers wanted luxury properties, could afford them and appreciated Auckland’s best suburbs with big waterfront views and proximity to the city, he said.

Link:

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10803130

Posted in News & Articles | 2 Replies

2 thoughts on “Do Foreign Buyers Push Up Prices?

  1. I have found many properties at auction are being SOLD by foreign owners. Often these were bought at a premium and are being sold for a lot less now. Singaporean buyers in particular in both commercial and apartments.

  2. There was a rash of zealous Asian buyers and maybe there still is. Given the size of that market compared to ours there will always be a large number of gullible punters.
    Another hazard of the game.

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