More than one-in-10 of the homes sold in New Zealand in the first quarter of this year were purchased by an immigrant.
The latest data* from Statistics NZ shows that 12.5% of the residential dwelling sales in the first three months were to people with residence visas.
The figures also show that immigrants' share of the residential property market has been steadily increasing for the last four years.
In the first quarter of 2019, people with residence visas accounted for 7.5% of property purchases involving a dwelling. Those numbers have steadily increased to 12.5% in the first quarter of this year, with the graph below showing the trend.
However while dwelling purchases by immigrants have been steadily increasing, sales of dwellings by immigrants have remained largely flat, barely changing from 4.1% of total sales in the first quarter of 2019 to 4.3% in the first quarter of this year.
Over the same period of time, purchases of New Zealand dwellings by overseas buyers who do not hold either a NZ residence visa or NZ citizenship, has declined by a third, from 0.6% of total purchases in the first quarter of 2019 to 0.4% in the first quarter of this year.
*Note: Statistics NZ collects data on residential property transfers where the property includes a dwelling. Although such transfers are described as sales, some transfers will not involve a sale where money changes hands, such as when an owner transfers a property to another entity such as a trust, or when a property is inherited. But the number of such transfers as a percentage of the total is likely to be small. The total number of immigrants buying or selling residential property is likely to be higher than the Statistics NZ figures suggest, because some NZ citizens will also be immigrants, but that data is not available.
The comment stream on this story is now closed.
- You can have articles like this delivered directly to your inbox via our free Property Newsletter. We send it out 3-5 times a week with all of our property-related news, including auction results, interest rate movements and market commentary and analysis. To start receiving them, register here (it's free) and when approved you can select any of our free email newsletters.
57 Comments
12.5% of a much lower total volume, so potentially decreasing in absolute terms. In any case, I'm not sure we should expect the latest wave of drainlayers and mechanics to be running around bidding up house prices based on this data.
But what percentage of resident visa holders own vs rent?
Also not sure why you have the disclaimer "some citizens are immigrants and not counted" - they're New Zealanders and thus no longer immigrants?
I don't like mass immigration (without adequate infrastructure), but it's unfair to stigmatize those who are here as somehow "different" to the rest of us (any more so than we or our ancestors were immigrants themselves).
But maybe I'm just reading the article as a judgement piece, rather than just reporting of raw data :P
over 40% new zealanders were born overseas. the real question here is the definition of "immigrants".
Not even close to 40% were born overseas.
I did check, and you are right, it's about 25%.
You're probably thinking of Auckland, huttman. In the 2018 census, just over 41% of Aucklanders were born overseas.
Those that arrived as adults are very frequently more NZ patriotic than the Māori and Pakeha who were born here.
Everyone in Aotearoa is an immigrant. Some came 800 years ago, some 3 years ago.
This does not mean imigrants that arrived in the year?
This is anybody who identifies as an imigrant.
Sòòo... luigi linguini came here ten years ago an just brought his 43 house , counts?
Also not sure why you have the disclaimer "some citizens are immigrants and not counted" - they're New Zealanders and thus no longer immigrants?
Because NZ citizens who have not lived here before, or for some time, are equivalent to immigrants wrt to the topic - i.e. new-entrants into the economy and housing market.
What would be of more interest is the proportion of homes sold that are more or less vehicles for money laundering.
We should add a question and a tickbox for "YES". /s
You mean the NZ housing ponzi is going " international! Wtf! 🤣🤣
It always was. Although politicians bent over double to obfuscate that fact. Especially the party led by the now ANZ Guy.
Like the place in Papamoa where the owner is prepared to lose $250k when selling.
“While it’s six years old now, it’s like new because it hasn’t been lived in with a family or anything like that.”
I'm sure they just dropped over $1m on a property on a whim. Oops my bad change of circumstances we're "buying elsewhere" , never lived in the place but let's wait 12 months until we list the surplus property for sale.
https://www.oneroof.co.nz/news/owner-prepares-for-250000-loss-on-papamo…
Tell ya who's market share isn't rising - young people.
Boomer greed is to blame for the crippling house prices and lack of opportunity.
-SMG.
That same greed is driving out the very people needed to sustain the economy.
Most boomers I know are looking for their false teeth and trying to use Facebook without embarrassing their kids. I think you ascribe far to much malicious intent to grandma.
I see this side as well - but I also see the dark side personality behind this 'lost and confused' outward character they put forward to the world. One where they take enjoyment from having control of all the generations around them....how?
1. with capital (their wealth gives them control and other generations need them because of this).
2. political power (they know governments have acted in favor of them and will continue to do so until enough die).
In many respects, I've also noticed that some take joy in seeing how difficult life has become for younger people. Why? Because it means their children can never gain independence from their boomer parents. Why is this important? The boomer parents biggest fear is becoming irrelevant, and holding younger generations captive to a system where they can't move forward without the control of their boomer parents, makes the boomer parents feel very powerful.
Have a read of 'The 4th Turning' (Strauss/Howe theory) if you want to learn more about this or consider this perspective.
Do your parent, or grand parents take joy in controlling all the generations around them.
I've also noticed that some take joy in seeing how difficult life has become for younger people.
Statements that have the word "some" in it are trivially true, and therefore useless. Some people are born with 2 heads (siamese twins). Just because "some" people in a generation don't meet your ethical standards, it doesn't mean you should form your opinion of a generation around them. I am sure there are people in all generations like that.
I am glad you know what boomers want and desire, years of unbiased research right?
Strauss/Howe theory
Is exactly that a theory
However, it has also been criticized by several historians and some political scientists, and journalists, as being overly deterministic, non-falsifiable, and unsupported by rigorous evidence
I guess people take an issue with the word greed because it's a bit of hanlon's razor. Never attribute to malice that which can be adequately explained by stupidity. It's the largest generation in history acting purely out of self-interest with little regard for the long term effects.
There isn't a huge amount of malice behind it but we are seeing what the end results are of people basically saying "f you got mine" on a societal scale. From an economic perspective though, remove all the emotive language and what not and it become pretty clear what's been going on and why people are starting to get pretty upset.
- 'Do your parent, or grand parents take joy in controlling all the generations around them'
Have observed this both inside own extended family and in others.
True for many generations throughout history, but the wealth gap between boomers and their millennial children (first group to be poorer than their parents at the same age in modern history) gives the foundation for one generation to exploit the other - and in my observation, a number of boomer adults love the power this gives them to control the lives of their adult children (of course a proportion don't....this might include you given the trigger point of my post above)..
Such control wasn't exercised against boomers at the same age, as they were able to more easily save deposits and buy houses, and be financially independent from their greatest generation parents. The greatest generation also went out of their ways to ensure that their childrens lives would be better than their own - the 'me generation' (boomers) therefore were raised with a sense of entitlement thinking the world was created for them by their parents - but not for their children. If they had been trying to make the world better for their children, then it was for themselves, would you describe present society as a success of this goal? Or was it that there was no goal that the boomer generation were attempting to achieve for society at all - other than to maximise the utility of everything for themselves?
'I am glad you know what boomers want and desire, years of unbiased research right?
Strauss and Howe (the authors and owners of the theory) are both boomers and talk about their own generation in this manner. Perhaps they don't understand their own generation? It is a framework for understanding generations and demographics - of course it isn't perfect, but I have found society makes far more sense after applying the theory.
You might benefit from reading it if not already? $12 on kindle..
Well that certainly took the steam out of the standard "boomers are evil personified" rant. I'm glad I was born a few days after the official cut off for boomerhood. It makes my cohort completely different. We can join Mr Observer and the happy crowd wallowing in glorious boomer victimisation.
Jealous envy.
I think you will find more post 1964 Gen Xs are property speculators than pre 1964 boomers!
Most of the boomers i know , that buy property, are buying for their spoilt brat Gen Y/Z kids. The Gen Xs are buying to rent.
Im going back in. I'm replying to shaft again. Wish me luck guys...
Do you have any data to show this? Anecdotes are all good and well but do you have anything to back that up?
I have tried looking it up and it seems that most sources are saying that the majority of property holdings are owned by those 50+ which would be primarily the Boomers and the older half of Gen X so maybe you're half right.
And for every spoilt brat Gen Y/Z who's mum & dad is buying them a house there will likely be another 10 that are stuck renting, sliding backwards and trying their hardest to save the enormous deposit that they require to buy a house without parental support. Most of them will be well into their 30's by the time they get a food on the ladder.
You always seem to look for the worst in people and it doesn't seem like a healthy worldview shaft, maybe try to look at it that everyone is trying their best to help themselves and their family get ahead within the economic conditions and framework they live in.
You' ll need luck too!... cos you ain't got the knowledge that comes from experience.
Gen Xs are the ones earning the big bucks and investing. The boomers are spending whats left of theirs!
Boomers are divesting by down sizing. For example Selling one home in Auckland and buying are cheaper one in Northland. The spare cash is then spent on keeping the economy going and keeping Gen XYZs IN WELL PAYED EMPLOYMENT by buyng boats, caravans , teslas e bikes, holidays, cafe meals movies, and $6 lattes
The boomers then die and give all their cash and assets to Gen XYZs
Sooo after 65years of hard work the boomers are keeping 1000s in work and giving the next generation wealth beyound their myopic dreams.
But whats hilarious is ... you dumb arse Gen Y/Zrs want to "cook the goldern goose and its eggs" today and then be cry babies when your a boomer and have nothing!
Good luck with that... with your attitude its not a wonder boomers take joy in your demise. You " 😪what about me😪😭" kids will drive more boomers into SKI holidays
Sooo, be carefull for what you wish for. You might just be better of playing status quo's " whatever you want" than Queens "i want it all and i want it now!"
(SKI = Spending Kids Inheritance)
Are they divesting though? Or are they spending up big from their taxpayer funded super without having to divest any of their assets and take the tax liability that comes with that.
And once again, do you have any stats to back this up? There isn’t a hard line between generations older gen x is closer to the boomers than younger gen who would be more millennial. It’s a spectrum not blocks of people.
Read again. I added to it.
Lol shaft you’re just saying stuff without backing it up with any actual evidence again.
Where are the 📠
One day youll be a boomer and wish youd kept your gob shut!
That's not how generations work.
Its exactly how it works...
One generation firks up - the next one pays. Its called the " judder bar" effect.
Yip a generation of speeding boy racer Gen XYs farked it up for everbody and the next generatìons - cos now we have to all suffer judder bars every freaking where!
Cause and effect!
I think most generations that follow will look to the Boomers as a shining example of what not to be when you get older. Hindsight is a wonderful thing, however the first step is acknowledging your generation played a huge part in the cesspit we have around us today, whether deliberate or otherwise.
Yes my question has been if the boomer generation had the intention of making life better for their children than it was for themselves, have they achieved this aim? And if not, why not?
And if they didn't have this aim, why not, given it appears to have been how they were treated by their greatest generation parents?
(The 4th turning answers these questions ...........but it isn't nice reading if you are a boomer as it exposes the darkside personality traits of that geneation - noting that every generation has its own darkside personality - this comment not being a boomer bashing exercise.....just exploring why things have become so bad from financial and social stability perspectives).
Half the current lot will shaft anyone given the chance
this boomer would love his tradesmen kids to be able to afford a house so they could move out...hell Im even thinking about giving it to them so I can have a wee rest
That is rather small honestly. Is there any breakdown on the stats?
Because how many of these are people with a foreign wife or husband?
I do think the housing bubble was largely driven by local citizens and long term residents more, but the renter class who is exploited is heavily in favour of the imported wage slave class. Also remember you can become a citizen relatively quickly, so maybe a breakdown for how many paper citizens vs blood citizens purchased houses would be good.
Rather small?
Proportionately Imigration is running at 1% of pop. Yet accounting for 10% of housing purchases?
I wonder how many of them are FHB vs buying investment property too...
If they were all fhb, that would mean immigrants make up a very large percentage of fhbs. Though - how many of the immigrants are in fact, highly skilled, and remunerated accordingly, bringing their own dosh and expertise into our little country? Surely at least 10%?
The immigration stats from Stats are deplorable (or I'm just too stupid to find what I'm looking for). What I'd like to see is
- breakdown by age
- breakdown by family size
- breakdown by income
- breakdown by region
- breakdown by sector
- combined so you can drill down into each category.
But these aren't necessarily new arrivals. A residence visa lets you stay here more or less indefinitely. The buyers could have been living here for years. It might not even be their first purchase.
After 5 years on residence you are eligible to become a citizen, an option nearly all who reach that will take (tiny $ cost and a passport really secures your permanent status and makes travel easier etc).
I think the spike is primarily because there's a large cohort of us who had been here for a long while on essential skills visas in well paid roles, who didn't quite qualify for residence under the points system for whatever reason, but have gained residence in the last 10 months~ under the 2021 Residence Visa scheme.
Right but comparing with 1% population growth as the parent comment did doesn't make sense.
Countries like China do not allow dual citizenship, so Chinese PR have an incentive not to turn that PR into citizenship - visiting home without a visa.
And I think Indians have to pay their government a huge pile of money if they want to lose their citizenship. And I think they also don't have duel citizenship. I know Indian immigrants who delayed their citizenship applications for many years.
Yes but those immigrants are much more likely to need to have a new place to live, than someone who has been here for years.
Why would you expect anything else? How many homes do you buy per year once you've already got one and aren't looking to move?
Similarly, once you move to a new place, do you find somewhere new to live? Of course you do. Why would you not expect it to be an outsized share?
Interesting numbers but the most significant aspect for me is that despite the upward pressure immigration is having on the demand for property there is still not enough to prevent the current record breaking month on month drops.
Imagine what would happen if somewhere like Australia became suddenly much easier to migrate to - oh wait.......
Green shoots all turned brown and mouldy due to the excess rain we have had.
Good! That means they will stay and build lives here. Somebody has to get off their arse and put in a shift if the locals won't.
I don't know why I clicked on this article. Might be time to have a break from Interest.co, it's turning into a clickbait site.
yep locals just want to go fishing, play golf and watch netflix...the days of building your house around your ears as your kids grow up have been stolen by the bureaucrats...I miss those days of of the draughty unfinished house, particle board floors, unpainted gib and no internal doors...and no time for anything but day job and trying to weathertight the house....
but a boomer would say that I suppose...this forum makes me so nostalgic..
Why would anyone else buy in NZ?
The only ones who haven't lived here long enough or are ultra rich will buy. No one else is stupid enough to buy here at these prices.
The actual number might very well be higher, we need to get building fast.
How many imigrants sold their houses abd went offshore to the west island.
Were these new immigrants or ?
If 22% of total sales are FHbers, and 1 in 10 total sales are immigrants, can I assume most immigrants are FHBers in NZ...
If I can they are making up almost 50% of the FHBer stats,
this is very very bad for domestic FHBers who are not recent immigrants.
They now only 10% of buyers.....
Since Labour just handed over 200,000 people residency visas for no reason other than they were present in the country at the time of Covid, then you would expect that they would be out in force buying houses. If not with their own money, but with money coming in from offshore. And they would all be FHB entitled to the Govt grants and handouts.
I’ve been living in NZ for 7 years, my daughter was born here.
last year I paid >$100k in tax.
I was looking to settle down, but don’t wait to be lumped in as an “immigrant buying property”.
maybe I’ll buy property in Aus instead
😢 Sorry to hear you're so insulted.
Good for you paying tax though. I'm sure that tax revenue wouldn't have come from other sources.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.