Labour Warns Overseas Purchases are Inflating Property Prices

Labour Warns Overseas Purchases are Inflating Property PricesAre the Chinese New Zealanders really to be blamed for the sky rocketing housing pieces in New Zealand? At least that is what Phil Twyford , the Labour's housing spokesman has to say.

Phil Twyford said that the sales data gathered by a major property firm revealed that people who had Chinese names purchased about forty percent of the total houses sold in the past three months till April end.

Mr Twyford also said that it was not a convincing fact which suggested that about nine percent of the Chinese origin Auckland residents bought almost forty percent of the total homes sold. However, he said that the figures from the report suggested that the overseas buyers of homes were the main reason behind the sky rocketing prices of property in Auckland.

But the building and housing minister of New Zealand Dr Smith said that the leaked data was not too reliable and added that the figures surely did not link the overseas buyers directly to the price hikes in the property market as the Labour claimed.

According to Dr Smith, the officially suggested reason for the inflation in property prices was due to lack of supply.