Property transfer statistics frequently asked questions

How many ‘foreigners’ are buying New Zealand homes? It depends how you define ‘foreigner’. For example, in the December 2022 quarter, of all home transfers: 78 percent were to at least one New Zealand citizen 12 percent were to at least one NZ-resident-visa holder (someone who can live and work in New Zealand for as long as they like) 9.6 percent were to corporate entities only (which could have NZ or overseas owners) 0.4 percent were to no NZ citizens or resident visa holders. When we talk about transfers to ‘overseas people’, we mean the 0.4 percent of transfers where none of the buyers were NZ citizens or resident-visa holders (excluding transfers where all the buyers were corporate entities). We focus on this measure because it aligns most closely with the definition of ‘overseas person’ in the Overseas Investment Act 2005. Where are ‘foreigners’ buying New Zealand homes? In the year ended December 2022, the areas with the highest number of home transfers to people without NZ citizenship or resident visas were: Waitematā local board (Auckland inner city) – 96 home transfers (3.2 percent of home transfers in the area) Christchurch city – 63 home transfers (0.5 percent) Queenstown-Lakes district – 54 home transfers (2.6 percent). What is the net change in ‘foreign’ ownership of New Zealand property? We don’t produce a measure of the net change in property owned by overseas people. If you subtract seller statistics from buyer statistics to calculate a net change in home ownership, it is important to note that: between the time of buying and selling a home, owners can move between affiliations (for example, a work-visa holder could become a resident-visa holder or NZ citizen) some types of affiliations may sell many newly built homes (for example, corporate entities) some properties don't include a home at the time of one transfer, but do include a home in a later transfer. Therefore, net changes for a given affiliation could be understated or overstated. Can property transfers statistics data give information about migrant status? Property transfer statistics (PTS) contain no information on the length of time that home buyers or sellers have held any visa or lived in New Zealand. The migration status of parties cannot be determined from PTS data. New Zealand citizens include people who have previously migrated to New Zealand and have gained NZ citizenship. For information about migrants (people who are changing their country of residence) see International migration. What about the Overseas Investment Amendment Act 2018? The Act affects contracts signed from 22 October 2018. As transfers are not counted until completed, it was more obviously reflected after the December 2018 quarter statistics. The Overseas Investment Amendment Act 2018 prevents most people who don’t hold NZ citizenship or a resident visa from buying residential property in New Zealand. For the latest changes to the overseas investment legislation, see About the Overseas Investment Act. Why is the number of home transfers to overseas people not zero? The number of home transfers to overseas people may never be zero due to Overseas Investment Act exemptions (for example, some new homes, and Australian and Singaporean buyers). Some contracts signed before 22 October 2018 could take many months before they are completed and counted in these statistics. Apartments bought off the plans might not be transferred to an overseas buyer until construction is complete years after the contract was signed. How many of the corporate entities have ‘foreign’ owners? Information on the ownership of corporate entities (by New Zealanders or overseas people) is not currently available, as it is not collected on land transfer tax statements. How are trusts captured in these statistics? We count a trust based on the visa or citizenship status of its trustees. If at least one trustee holds NZ citizenship, then the transfer is counted as a transfer to a NZ citizen. How much New Zealand property is owned by ‘foreigners’? We do not currently have a register of property owned by overseas people. These property transfer statistics measure overseas involvement in property transfers in any given quarter, but not the total amount of property owned by overseas people. What is the difference between home transfers and total property transfers? Total property transfers include all transfers of specified estate in land (as defined in the Land Transfer Act 1952). This includes homes, sections (bare residential land), commercial properties, and farms. Home transfers include only transfers where at least one buyer and one seller both stated there is a home on the land. Are overseas investment laws being enforced? The Overseas Investment Office administers NZ's overseas investment laws. Overseas investment decisions has information on applications by overseas people to buy New Zealand property Enforcement action taken has information on enforcement where overseas people have bought property without appropriate consent or not met the obligations they made when they applied for consent. How does Australia record 'foreign' buyers? The Australian Foreign Investment Review Board (FIRB) reports on approvals of purchases by overseas buyers. For further information see Foreign Investment Review Board (FIRB) Publications including annual reports. Why do you talk about ‘transfers’ not ‘sales’? A transfer is not the same as a sale. Transfers often involve a sale, but there are many other possible reasons for a transfer (such as marriage settlements, boundary changes, trustee changes, and changes in the share of ownership). Every sale is a transfer, but not every transfer is a sale. We refer to the parties involved as buyers and sellers for simplicity. We know the number of transfers to overseas people because this information is collected on land transfer tax statements, which cover all types of transfer and not just sales. Aren’t there lots of people missing from these numbers? We have information about the visa status or citizenship of virtually all people who transfer property in New Zealand. The only uncertainty is around the ownership of corporate entities that transfer property. In addition to statistics about the visa status or citizenship of people who transfer property, we also publish statistics about their tax residency. Until early 2020, many NZ citizens and resident visa holders were exempt from stating their tax residency when entering into a transfer of their main home. Land transfer tax statements FAQs has more detail Tax residency is not the same as nationality. We advise focusing on the statistics about visa or citizenship status. en-NZ