(Ecns) – A New Zealand economist suggested a ban on foreigners buying property as wealthy foreigners rush to buy affordable houses in the country, according to the Australian New Express Daily.
A survey on residential houses showed that among the foreigners buying property, Australians account for 22 percent and Chinese 20 percent.
Tony Alexander, chief economist at the Bank of New Zealand who conducted the survey, suggested a ban on foreigner purchases.
"My suggestion has been to adopt Australia's policy, where if you are a non-resident you can only buy something that is new," he said.
Alexander said he does not think foreign purchases alone led to the structural crisis in New Zealand. However, he said the ban would help locals understand what led to the skyrocketing home prices.
According to Alexander, supply constraints, expensive construction materials and excessive building regulations all contribute to rising prices.
The monthly survey gathered information from 10,000 local real estate agents about their sales.
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