Auckland house prices are set to "take off" again as Inland Revenue clears a backlog of IRD number applications from cashed up overseas buyers, the Property Institute says.
。。。
In the three months to January 31 Inland Revenue issued 1025 IRD numbers to foreigners who applied for one for the purpose of buying or selling New Zealand property.
In the same period 20,409 houses were sold in New Zealand, 6265 of which were in Auckland.
If each new IRD number holder bought one house in Auckland they would account for 16 per cent of total sales during that period.
....
A total of 37,637 IRD numbers were issued to foreigners for all reasons from October to February.
.....
New Zealand Property Investors Federation executive member Andrew King said the IRD numbers issued to foreigners appeared to be low levels but it was not known how many properties individuals purchased.
Auckland's housing market had cooled in recent months in part due to bright-line-test legislation but more because there were less Chinese buyers due to restrictions on moving cash out of China and rental yields had not kept pace with rising house prices, he said.
"The yields in Auckland have been falling," King said.
Investors were either looking to other areas for better yields or choosing not to buy, he said.