Phil Twyford claimed last year:
Nearly 40 percent of the houses sold in that period went to people of Chinese descent, and as your introduction pointed out, the Chinese New Zealander population in Auckland, according to the most recent census data, is about 9 percent. Now, that is a remarkable discrepancy, and, in my view, it’s simply not plausible to suggest, as many have done in the last couple of years, that the Chinese— ethnic Chinese people who are buying houses in Auckland are all Chinese New Zealanders. It points, I think, to only one possible conclusion, and that is that offshore Chinese investors have a very significant presence in the Auckland real estate market when you consider that Auckland house prices are spiralling out of control at the moment. …
This is an issue about foreign investment, and it doesn’t matter in one sense what the surnames of the buyers are, but if this data shows, and I believe it strongly suggests, that offshore Chinese investors have a major presence, possibly as high as 30 percent of the houses sold by this real estate firm over a three-month period, then that is very significant.
Louise Upston has released actual data. It shows that 4% of Auckland buyers were overseas tax residents and 58% of those 4% were from China which is 2.3% of total Auckland sales.
Phil Twyford should be ashamed of himself for his disgraceful and shoddy data where he failed to differentiate between New Zealanders and foreigners on the basis of their surname. You may have a Chinese sounding surname yet be a 4th generation New Zealander.
The LINZ data is not perfect and they go to great lengths to state its limitations. But the gap between the 30% Twyford was claiming and the 2.3% in the LINZ data is so great that is is preposterous to suggest that Twyford was anywhere near correct.
Stats Chats says:
The LINZ report does a good job explaining the real limitations of `tax residence’ as a criterion, but it’s a lot better than any previous data we’ve had.
I’m looking forward to a Mt Roskill by-election (if Goff wins) where the Labour candidate has to explain to the many Chinese New Zealanders living in Mt Roskill why Labour whipped up Aucklanders to blame them for high property prices.
The data will continue to be updated every three months, so we will be able to see if the levels of purchases by foreign tax residents increases. But for now there is nothing to suggest they are having a big impact on the market, and hence Labour’s policy to ban them is basically worthless, as it would have a miniscule impact on house prices at best. Maybe Labour could focus on real solutions such as increasing the amount of land available, instead of deeming people with Chinese sounding surnames as the problem.