Clamp down on foreign buyers: Alexander
He says New Zealand should look at following Australia’s lead, where foreigners can only build new houses. This reduces competition for second-hand homes but also improves the country’s housing supply.
Alexander says: “In the context of a housing shortage in New Zealand that would seem like a good idea.”
He said such a restriction would be more effective than introducing loan-to-value restrictions, as the Reserve Bank is considering.
But he acknowledged house prices were a tricky issue for the Government to navigate. It is under pressure from the opposition parties over housing unaffordability, but it risks alienating homeowners if it reduces the value of property.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
![[The Wrap] What the heck is happening at the FMA?](https://goodreturns.publit.io/file/c_fill,w_300,h_200/a6c3bc06-6401-44de-96e2-286c090e132d.jpg)