Is New Zealand prepared for the big wave of Chinese cash heading our way to invest in properties ranging from luxury homes lapped by the Waitemata Harbour to Auckland-wide retail, industrial and commercial…
I find the coincidence astonishing that our government does not seem to be interested in regulating property prices while council rates are bound to property valuations and many politicians are in real estate.
I wonder why any politician would be interested in solving this housing crisis. Real estate revenues would go down, so would rates, all while Auckland at least is already having rates issues and budget problems.
The Productivity commission did a report in 2012 and outlined many issues, actually a very interesting report to read. Another updated draft report was just released two weeks ago and contains pretty much the same findings. Yet again I note that the issues have not changed in 3 years, are well documented and yet not addressed.
This leaves me with some assumptions:
a) Politicians have not read the report
b) Politicians have read the report but not understood it
c) They have read and understood it but are not interested in it
d) They have not read it and are not interested in it
Chinese investors are only interested in NZ property because of the good return. If there was no money making in property, the issue would go away.
However, I still like to make a difference between Investor and Speculator. The first one supposedly builds something up and creates value and amenity. The latter ones are just after the money without adding any real benefit to the community. So at least my idealistic thinking.