A_WB160920HAVELOCK5.JPG The Government's housing package and bright-line test extension has affected open homes around Hawke's Bay including Havelock North. Photo / File
WB110321PROPERTY2.JPG Property in Napier and all over Hawke's Bay will not be slowed by new housing package, according to real estate agents. Photo / File
Hawke's Bay real estate agents say the Government's $3.8 billion housing package and bright-line test extension will only "cool" the region's hot market for a matter of weeks, if at all.
But Property Brokers residential sales consultant Adrian Cowie said open homes were quieter over the weekend.
Last week Prime Minister Jacinda Ardern announced her Government was allocating almost $4b to accelerate the pace of house builds.
The scheme is also doubling the capital gains tax-esque bright-line test from five to 10 years - any gains on a residential property that is not a "family home" will be taxed if sold within 10 years of purchase.
Cowie said the plans to curb the country's housing crisis affected the weekend's open homes but won't have a large impact on the local market.
"We expect the Government's announcement will cause nothing more than a couple of weeks pause."
He said open home visitors were down by half and phone and email inquiries were a little lighter too.
The real estate agent said they haven't heard much comment so far from buyers or professional investors about the bright-line extension.
"[Investors] have had a cracking few years with capital gains 20 per cent per annum, and as they hold property long term, 10 years won't worry them too much," he said.
Cowie said those most affected are the ones the Government probably shouldn't be targeting: "The Ma and Pa investors who have recently taken their savings out of the banks - due to poor returns - and invested in a rental or two, hoping to sell when they retire in a few years," he added.
The PM said last week the housing package will increase the supply of houses and remove incentives for speculators.
Ardern added the measures will help to start fixing the New Zealand's "long standing" housing crisis.
But will this package ease or even flat line Hawke's Bay's property market?
Tremains regional manager Stuart Christensen said it's definitely not going to bring the market down - it's too strong.
"There's too many buyers out there and still supply and demand," he said.
"It will make people ask questions but it won't dampen Hawke's Bay's soaring market, which is going very well."