New Zealand Takes Aim at Speculators to Prevent Housing Bubble
- Ardern government to scrap key tax incentive for investors
- Measures may have ‘chilling effect on investor demand’
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New Zealand’s government took aim at property speculators with a suite of new measures to tackle runaway house prices and prevent the formation of a “dangerous” bubble.
The government will remove tax incentives for investors to make speculation less lucrative and unlock more land to increase housing supply, Prime Minister Jacinda Ardern said Tuesday in Wellington. The moves come as surging house prices keep first-time buyers and people on lower incomes out of the market, raising concerns about growing societal inequality.