Overseas investment slows in Hawke's Bay's residential market

Hawke's Bay consents have been granted to citizens from the United Kingdom and Hong Kong. Photo / File

The Overseas Investment Office (OIO) has approved only five applications from people with residency visas to buy Hawke's Bay homes since restrictions to overseas ownership were introduced in October 2018.

OIO group manager Vanessa Horne says a small number of overseas people are entitled to buy one home to live in in New Zealand.

"Under the new overseas investment rules, most overseas people are not entitled to buy homes in New Zealand," Horne said.

"However, people with residency visas are able to apply to the OIO to buy a home to live in."

In October 2018 the Government made changes to the Overseas Investment Act to put restrictions on overseas people buying residential property in New Zealand.

Hawke's Bay consents have been granted to citizens from the United Kingdom and Hong Kong with the total value of the houses that have been consented $1.5 million to date.

Tremains Hawke's Bay sales manager Stuart Christensen said since the change was announced they have seen a noticeable change.

Tremains Hawke's Bay sales manager Stuart Christensen said since the change was announced they have seen a noticeable change. Photo / Supplied

"We have seen it change a bit over the last year and I think a reason for that is the process for them to make the step to buying a home now is very expensive," Christensen said.

"We're seeing that where most of those people from overseas moving to the region are now having to rent while they go through that process which takes a couple of years."

He said it has caused a dip in the investment market but there is still the desire for people to move to the region not only from New Zealand but other parts of the world who now struggle to.

Just last week, the Government announced Japanese-owned Pan Pac Forest Products was given special approval to bypass the OIO to purchase land for forestry for the next three years as the Government sought foreign forestry money to help meet its tree planting targets.

The pre-approval was made despite the Green Party having strongly protested land sales to foreigners and Forestry Minister Shane Jones saying he was sympathetic to rural concerns that converting productive farm land to forestry could cost jobs.