He refused to specify what levels of foreign buying he was happy with, but said if it was close to the 40 per cent Labour had assessed as Chinese buyers in its Auckland's figures it would be much bigger than he expected and a problem. However, he doubted that was the case, even at the lower 30 per cent figure.
"Around New Zealand I very much doubt that is the case. Even in Auckland I'd be staggered if that was the case. But let's wait and see."
He said the new data would not be a perfect measure because it would include New Zealanders overseas buying homes to move back to. That could distort the figures from Australia and Britain, where a lot of New Zealanders were based. "In a place like China, there are a hell of a lot less New Zealanders who actually live in China. So we would look at the non-resident tax data out of China and be able to make an assessment that the vast bulk would probably not be New Zealanders living overseas."
Labour housing spokesman Phil Twyford said the lack of detail on what would be known and when showed the Government had rushed the measure. "The Government knows it has been against public opinion on setting up a non-residents property register and is scrambling to look like it is doing something."
Mr Key said he was not concerned about the impact of a boost in Chinese investment in New Zealand after restrictions on sending capital overseas eased in China. "China hasn't been a massive investor here, so rather than be worried in some instances I would welcome that."
Beware of taxman, warns Key
Those in a rush to buy property before new restrictions come into force in October are ignorant of the current rules and will be in the IRD's sights, Prime Minister John Key says.
"The bright-line test takes away ambiguity when it comes to purchasing investment properties for that two-year period. It doesn't fundamentally change the law," Mr Key said.
"If you bought a property today and it was an investment-based property, that will be on the radar screen of the IRD. So, if people think they are going to beat the rules by buying today before the bright-line test comes in, they might be in for an awfully nasty shock when they get a knock on the door from an IRD tax inspector."
Mr Key made his comments after an agent from Auckland's biggest residential real estate agency said "some groups of buyers" were trying to beat the Government's restrictions.
Kevin Liu, of Barfoot & Thompson's Onehunga office, sent a letter to home owners in his area, asking them to get in touch if they were thinking of selling.
The letter indicated there was steep demand from "some groups of buyers" which he said would be affected by a new law coming into effect from October 1.
To get around new tax and banking restrictions, those buyers now wanted places, he indicated. Liu said he wanted to list more residential properties so he could meet that demand, which was exacerbating an already short listings supply.
The new measures include a capital gains tax on residential property sold within two years of buying.
The exemptions to this new bright-line test will be if the property sold is the seller's main home, if it is part of a deceased estate or inherited, and if it is transferred as part of a relationship settlement.
New disclosure rules will also give the Government information about who is buying property - residents or non-residents.
