Labour’s threat to introduce legislation to restrict overseas buyers from purchasing houses will have one instant and notable effect. If foreigners were putting pressure on prices before, it will be nothing like what is going to happen once news of Labour’s intent travels overseas.
No matter what anyone thinks of the policy, its for sure not going to help things right now. In fact it will probably make the situation a hell of a lot worse, as buyers flock to purchase just in case they’re prevented from doing so after next year’s election.
Anyone owning an Auckland house has just won lotto.