New Zealand's New Government: Gov't moves to stop foreign speculators distorting real estate market

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New Zealand's new center-left government says it will take action to protect its housing market from foreign speculators. The Labour-led coalition plans to impose an urgent ban on foreign ownership of residential property and potentially slash immigration numbers by up to 40 per cent. Its globalist opponents claim it may harm the economy. Our correspondent Owen Poland in Auckland has more.

"Did you want to take a photo as well"

It's called "Jacindamania". New Zealand's new 37 year old Prime Minister, Jacinda Ardern being mobbed by well-wishers after her surprise victory in September's general election.

JACINDA ARDERN NEW ZEALAND PRIME MINISTER "As a local it's nice to be able to just come down to my neighbourhood and spend a bit of time."

Ardern's new coalition Government is basking in the traditional honeymoon period, but their economic policies are raising concerns at home and abroad.

CHRISTINA LEUNG NZIER SENIOR ECONOMIST "The new Government has indicated that it's looking to be less open in regards to policies on trade, foreign investment and immigration."

One major concern is the Government's proposed ban on the foreign ownership of existing houses which is designed to protect the domestic housing market.

JACINDA ARDERN NEW ZEALAND PRIME MINISTER "We are an economy that welcomes foreign investment in the right areas. What we have contested is that investment from overseas buyers into our housing market is just making it too difficult for people to buy their first home in New Zealand, and again, we're simply doing what many other nations have made moves to do."

But the real estate industry questions the logic.

BINDI NORWELL REAL ESTATE INSTITUTE CHIEF EXECUTIVE "There's very little data and evidence that links in foreign ownership with significantly impacting our housing market, so I think there's a lack of clarity around that at the moment."

OWEN POLAND AUCLAND "The Prime Minister's first international engagement will be at the APEC Leaders Meeting in Vietnam where she hopes to convince world leaders to renegotiate the controversial Trans-Pacific Partnership so that it better reflects New Zealand's interests. "

The new Government insists that it's pro-trade, and that any changes to trade agreements are designed to restrict foreign investment in housing and sensitive land.

JACINDA ARDERN NEW ZEALAND PRIME MINISTER "We negotiated and successfully passed the China Free Trade Agreement which has proven to be hugely important to New Zealand, and we will continue to advocate for our exporters and to increase our trading partners."

But Labour's election pledge to cut annual immigration by up to 30 thousand people - and restrict international students - has worried New Zealand's four billion dollar education sector.

PAUL CHALMERS INTERNATIONAL EDUCATION GROUP "I don't think New Zealand can afford it, frankly. We're a country that requires export dollars and export education is one of the sources of very good quality export dollars."

Economists also question how the new Government can build 100 thousand affordable homes in ten years without migrant labour.

CHRISTINA LEUNG NZIER SENIOR ECONOMIST "There are labour shortages which are fairly acute and it's unclear the effect that any migration cuts will have on this sector."

However the Prime Minister has got that covered too. She says visas will be available - where needed - for skilled migrants. Owen Poland, in Auckland, for CGTN.