Labour’s Overseas Investment Amendment Act, aimed at improving housing affordability for New Zealanders, came into force in October, 2018.
Since then, only New Zealanders, Australians and Singaporeans have been able to buy houses or sections less than 5ha in size in this country.
One exception is for managed apartments or approved complexes of 20-plus units, which some non-residents have been allowed to buy into, but not occupy.
The ban has long been a discussion point in the resort, many believing it has done nothing to help with affordability, and has had negative impacts on the construction sector and wider community.
Yesterday, National leader Christopher Luxon and finance spokeswoman Nicola Willis announced the party’s tax policy, which included a Foreign Buyer Tax, estimated to rake in about $700 million, while they will keep the foreign buyer ban only for homes worth less than $2 million.
Homes worth more than that can be sold to overseas buyers, under their proposal, but they would be taxed at 15%.
Former mayor Jim Boult, who submitted on the draft proposal in 2018, said the announcements were "sensible" and would change the game for Queenstown.
"I don’t think this did anything for the affordability of houses for Kiwis in Shotover Country, Lake Hayes Estate or Hawea subdivisions.
"Foreign buyers aren’t buying in those areas, [they] are coming into our market buying high-end properties and making significant contributions to the district," Mr Boult said.
He noted when he was looking for "philanthropic donations" while he wore the mayoral chains, overseas investors were his first port of call and Americans, in particular, "were the first people to put their hands in their pockets".
On the tax, he said he would like proceeds to go to "affordable housing for Kiwis".
National’s former Southland MP, Hamish Walker, now director of high-end real estate firm Walker and Co Realty, said he had personally sold more than $82m of real estate this year, with an average sale price of more than $4m.
Mr Walker said his phone was going "non-stop" yesterday with people who would benefit from the proposed change in Queenstown, particularly those disadvantaged when the ban came into effect.
Builder Allister Saville, a leader in the high-end residential construction sector over the past 30 years, said, on average, 75% of their builds over that time have been for overseas clients.
"This announcement is great news [for] Queenstown and the wider construction community — that filters down to the community in general."
Mr Walker reflected on the late Sir Eion Edgar, who "rallied passionately" against the Bill and the consequences of it.
National’s proposal was almost exactly what Sir Eion proposed in February 2018.
At the time he said the easiest way to address concern about foreigners squeezing out first-home buyers was to limit overseas buyers to properties above $2m or $3m, which first-home buyers would not be interested in.
