Singapore radio ad targeting NZ rental market 'wrong and unfair'
Johnny Foreigner is building new apartments.
Hot Topic
EARNINGS
The Greens' Kevin Hague says an ad running on Singapore radio shows "Why we desperately need restrictions on non-resident foreign buyers in our overheated market. These cashed-up non-resident buyers must think New Zealand and the National Government are easy marks.”
The housing spokesman adds, "Young New Zealanders are having to pay those rapidly-rising rents, and they're being completely priced out of ever owning their own homes. Everyday New Zealanders aren't suckers - they know this situation is wrong and unfair."
The language of the radio ad is certainly galling. It goes:
If you happen to own an apartment in Auckland, New Zealand, the high rent returns, other people's money, around half a week's pay for most people, could be paid to you as rent every week.
Now many people invest in Auckland because of the high demand for rents, there's no SAB duty [Singapore has a surcharge on foreign buyers], no land tax and within New Zealand generally no capital gains tax either, it's an investors' dream and very affordable.
But it happens that the ads were actually placed not by an Asian outfit but a Dunedin-based company, Australian Property Solutions.
And regardless, its director and major shareholder Lyndon Fairbain says his company is only selling plans for new properties and buyers were adding housing to the New Zealand market -- with a focus on building new apartments in the Auckland CBD.
It doesn't need to be spelled out for NBR readers, but for Mr Hague's benefit, new housing will increase supply, which will in turn reduce prices and rents.
The Greens might well want to restrict foreign investment, or choke it back with taxes, or reasons related to sovereignty and control of land. They're entitled to that point of view. But it cannot say blocking foreign investment (is Dunedin foreign?) in new developments will not make housing more affordable.
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Singapore radio ad targeting NZ rental market 'wrong and unfair'
47074