Knowing whether the resource is properly utilized or allocated optimally, in such a way that no one can be made off better without someone else worse of. This assignment will measure the impact of market Economic Efficiency on New Zealand Government banning non-citizens, non- residents to purchase existing residential dwellings, but exempting Australian Citizen and Singaporian Citizen because of free market trade.
There were an estimated 1.84 million private houses available, stand-alone houses, apartments, townhouses, village unites, ten percent not occupied. Estimated population of 4.
79 million, To allocate each shelter we assumes an average of three people per shelter. There was a possible shortage of houses and accommodation needed and still rising due to the new immigrants and visitors coming annually.
The reason Govt has banned foreigners from buying NZ houses because they want to allocate those resources for the young generation of NZ citizens,The main idea is to make housing cost more affordable and help make the dream of home ownership a reality for more kiwis.
But how do government allocates to those houses to young generation if most of an average working kiwis are spending carelessly on luxury items rather than saving?
Now that the cost of raw material in building houses is rising, it will also add up to higher housing prices as well as land cost is one of the reasons behind higher housing cost.
But The law is unnecessary because the number of non-resident foreign is low and could stop urgently needed foreign investment in the housing market,.
Banning foreigners from buying a home will not have a significant effect on the housing market, estimated that only three percent of the national house transfer was recorded this last June 2018. It won’t also stop them from buying new apartments in large developments or multi-story buildings, but not the new stand-alone houses.
It is also important that New Zealand Government should have transparent plan in housing and infrastructure to accommodate migration policy and not just focus on the growth of tourism
But Real Estate Institute chief executive Bindi Norwell said the ban won’t really make a difference in light of the latest statistics.”We have been very vocal over the past year that we don’t believe that banning foreign buyers from purchasing property in New Zealand is going to have any impact on house prices nor will it help young people into their first homes,” Norwell said.
Kiwibuild should develop more houses on nearby suburbs and encouraging large investors to build more buildings such as hospitals, malls and schools in other non – city areas will also increase supply levels, improving govt transportation infrastructure will definitely help people to buy more houses in other parts of nz will be a major impact on the housing crisis.