Chinese Interest In New Zealand Housing Properties Shoots Up: Local Real Estate Portal Draws Huge Traffic From China

Chinese demand for New Zealand housing properties is going up. This is evidenced by the success of a China-centric real estate Web site in New Zealand which has been marketing New Zealand properties to the Chinese audience. The Web site has garnered a huge traffic of 22 million people annually. After Australia, New Zealand is one of the popular destinations for the Chinese, and the Web site director says New Zealand is attractive because it levies no capital gains tax.

The property Web site, HouGarden.com, now markets more than 90 percent of listed houses in New Zealand directly to Chinese buyers. According to the Web site, 60 percent of its traffic is from China and it is getting 22 million views every year, reported 3 News.

Director Sam Yin claims his Web site plays a positive role in getting more buyers from the Chinese market. The Chinese buyers are increasingly fascinated by New Zealand because it has no capital gains tax or policies that restrict them from buying up land, unlike Australia, Canada and America that have policies to limit overseas buyers. "I don't think New Zealand has anything yet, but it may happen." HouGarden.com has ensured high visibility for its portal with billboards all around Auckland City and is planning it across New Zealand.

Reaction of Political Parties

But the rising Chinese interest in New Zealand property is also matched by an equally strong outcry by some political parties who are calling upon the government to apply some brakes via appropriate policies. The Labour Party said there is no point in blaming real estate agents for inviting Chinese buyers. It is for the government to take it seriously if house prices were to be managed. New Zealand First Party leader Winston Peters wanted urgent action for a land and house ownership register to know who's buying what, where and when and who owns what in this country.

Simon Henry, chief executive of international property Web site Juwai, also attested for the soaring popularity of New Zealand propeties among Chinese property shoppers. He said New Zealand is seventh in the top 10 list of countries where wealthy Chinese want to buy houses. Australia comes second on the list. He told ODT News that an average Chinese foreign buyer usually spends $1.4 million for a property, which is double that of a first-time buyer or domestic buyer can afford in New Zealand. Henry said another reason Chinese buyers are getting attracted to New Zealand is its proximity to their home country.