Labour leader David Shearer said the policy was necessary to give Kiwi first-home buyers a helping hand into the overheated housing market.
"We've found properties from Auckland to Invercargill that are being marketed to offshore speculators. There is no benefit to New Zealand in selling our homes to speculators who have no intention of living here.
"That can only increase demand, and help drive up prices."
Ms Millard, who has been managing the Bayleys Rotorua branch for 10 years, said with the exception of the Crafar Farms sale, she could not remember the last time an offshore foreign buyer had bought a local property.
She would welcome foreign investors who might want to consider looking further afield than Auckland.
"We've got 14 beautiful lakes and you can park outside the post office at midday."
Ms Millard also considered the foreign ownership policy to be "quite racist".
Housing sales data for Rotorua released by the Real Estate Institute of New Zealand show the number of houses sold in June 2013 dipped to 66 compared to 88 in June 2012.
However, the median property price rose slightly, from $266,250 to $277,500.
Labour's policy has drawn mixed political reaction and been labelled anti-Chinese.
Prime Minister John Key said there was a limited number of foreign home buyers, and Labour's policy would have little impact on the market.
"The reality is that not that many people come in and buy properties that aren't either permanent residents or aren't going to take up personal residencies." However, New Zealand First and the Green Party are backing the proposal.
APNZ
