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… because National doesn’t like the competition;
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It’s a bit rich for National’s Housing Minister, Nick Smith, to be crying crocodile tears on the subject;
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– when, in the last seven years the Nats have;
- sold off hundreds of State houses – and want to flog of 2,000 more
- allowed a critical housing shortage to make Cantabrians’ lives a misery
- done practically nothing to alleviate a growing housing crisis in Auckland
- refused to implement a comprehensive Capital Gain Tax, the lack of which is distorting the investment market
- refused to set up a foreign buyers’ register
- generally sat on their hands and done the bare minimum to build more housing
On this problem, National is way out of synch with public opinion. (ACT supporters’ public opinion counts for near zero.)
In fact, our esteemed Dear Leader even refuses to acknowledge that a critical housing crisis exists in Auckland;
“No, I don’t think you can call it a crisis. What you can say though is that Auckland house prices have been rising, and rising too quickly actually.” – John Key, 13 April 2015
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My position on this problem (I refuse to call it an “issue”) is clear and simple: land and housing should not be sold to non-New Zealand residents or citizens. If you want to buy a house or farm, become a citizen and move to New Zealand.
This applies to whether you are from Boston, Beijing, or Berlin.
Those free-marketeers who maintain that a property-owner has an unfettered “right” to sell to the highest bidder, irrespective of nationality, are wrong. “Rights” are never absolute. The citizens of a country determine, through concensus, what property rights we confer upon ourselves.
Many other nations do not allow foreign investors to buy houses. China is one of them.
If, as I believe, the majority of New Zealanders are opposed to offshore investors buying up our houses, then that must be reflected in our legislation.
This is (hopefully) not about xenophobia. This is about the next generation of young New Zealanders having the same opportunities to buy their own home, as their parents and grandparents did.
This is about not allowing an older generation of home-owners flogging their houses off to the highest bidders from Beijing, Boston, or Berlin, at the expense of a younger generation who cannot hope to compete with millionaire investors from overseas.
Our parents and grandparents never had to compete with buyers from Berlin, Beijing, or Boston. So it baffles me why we have saddled our children with this colossal hurdle. The only reasons that come to mind is greed and a misguided ideolological view of an unfettered right to sell to whomever.
Otherwise, if we keep going down this foolhardy road then, as sure as evolution made little green apples, we risk literally becoming tenants in our own country.
If that is our end goal, we are on the right track.
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References
NZ Herald: Don Brash tells: Why I played the race card
Radio NZ: Labour accused of playing ‘race card’ over house price bubble claims
Radio NZ: Key denies Auckland housing crisis
Other blogs
Bowalley Road: Chinese Whispers
Dim Post: What we talk about when we talk about Chinese people
Dim Post: The racist style in New Zealand politics
No Right Turn: Sounds like racism
Public Address: House-buying patterns in Auckland
Public Address: My last name sounds Chinese
The Pundit: What’s in a name… and a number?
The Standard: International investment in Auckland housing
The Standard: Twyford Responds
The Standard: China Crisis
Previous related blogposts
Kiwis, Cows, and Canadian singers
That was Then, this is Now #10
Doing ‘the business’ with John Key – Here’s How (Part # Rua)
Three Questions to Key, Williamson, Coleman, et al
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Selling homes to overseas owners makes no sense no matter what way you view it.
I have to work really hard at suppressing a violent rage whenever I see David Seymour. Does anybody in the country actually care what he thinks? Racism. It’s all they’ve got. they have no other argument, so they are playing their joker, hoping that will shut it down. They are so utterly and transparently pathetic and bereft of any ideas other than those that will enrich themselves, that every play they make further reduces their moral authority to govern, if they haven’t already overdrawn that account a while back. They aren’t even pretending anymore.
I find it hard to get angry at David Seymour. It’s like getting angry at your socially awkward teenage neighbour. Or getting angry at Arnold Rimmer. I just can’t take the guy seriously.
https://youtu.be/r-ZiI3iVgpM
Living very close to Epsom, and also Balmoral and Mt Eden here in Auckland, I noticed very clearly, how prominent the ACT Party was with many new Chinese migrants here. Especially the business people seemed rather enchanted with the ACT Party. I saw ACT signs outside Chinese owned and operated shops, restaurants, outside residential homes, everywhere.
I am sure they have some generous donors also, some of them may be the Donghua Liu type.
Anyway, ACT have made great efforts to get Chinese migrants’ votes, and a fair few of them also seem to like the libertarian kind of approach, you know, free business, with few strings attached.
Naturally Seymour will be well aware of this, and he will have been given his orders a long time ago, to be kind to their Chinese migrant voters, and to appreciate their support.
Hence it should not surprise that he is quick to call any person, who dares discourage foreign investment, and more buying of NZ companies, a racist, or whatever.
We know how Seymour got into Parliament, we know how ACT still survives, we know where that oxygen comes from, the boss sits in his own nice domicile in St Stephens Ave in Parnell, just down the road, Seymour will know his bosses expectations also, and fall on his knees, kiss his hand and do whatever else.
It is really quite ridiculous, almost amusing, were it not so serious, how it affects our political reality in NZ.
Thanks for the insight.
I totally agree with your sentiments.
Our next generation should not be competing against foreign speculators to buy a house in their own country. END OF STORY!
If Martians were causing the problem , would Labour be accused of Martianphobia for highlighting the problem?
Good on Labour for showing some spine.
It’s a huge problem that needs immediate attention!
Yes Kingi, – I to as my skin crawls when Seymour opens his mouth he sings like a pure clone of FJK with his everything has a price & free for slaughter rule of “no holes barred” sell the lot if they want it.
He is another traitor to what NZ has been as an example of a close as they have gotten to a harmonious society my brother.
I am sad when these Neo Cons’ who have no depth of dignity and resolve to preserve our nation from becoming just another playground for the rich & idle so when we have all become tenants in our own land as John Key said he never wanted to see what then?
Do we all embark on yet another journey for another land to call our home?
No as we need to stand and fight these carpetbaggers and criminals and have them leave our shores as traitors.
When I saw and heard it, when watching The Nation, I did at first not quite know what to think and say about what Phil Twyford presented there. I think he was aware that the way he presented some statistics, that appear to have been leaked from a major real-estate company (probably by disgruntled staff or so), was a bit risky. But Phil went ahead with it, and he stated rather clearly, what Frank also states above.
So I fear that it came close to being seen as playing the race card, but in my view, he was not really doing that, at least not intending to do that. There is NO way, that the opposition can expose what is happening to the housing market, or say a fair share of it, without taking such risks.
The government is damned reluctant to bring in a foreign buyer register of sorts, and the announcement to gather tax details, and to expect such buyers to get an NZ tax number as from October, that in itself will not ensure that we will continue to have some off-shore investors and also speculators buy residential real estate in New Zealand.
Phil must have known, he is damned if he presents that data, but he and Labour will also be damned going on about what many know is happening, and do nothing, while the government covers up all loop-holes for anybody to find out what the size of such buying may be.
So those that were quick to slam Phil Twyford, they are the known better off ones sitting in secure government jobs, in secure mainstream media commentariat jobs, in other secure, also vested interest representing positions. The ones on the panel with Lisa Owen, they are not the average earner, the low wage earners, who have a shit chance of ever owning their own place on the Auckland housing market, apart perhaps a caravan or shoe-box apartment. They are the better off, upper middle class, who have their homes, sit dry and warm, and can lament as modern day “neo-liberals” and libertarians about Phil speaking out something that may just suggest something, as it is too much of a coincidence to look as it does.
What I fear many New Zealanders have, is the same problem that many Germans have. The mistakes of the past force people to keep their mouthes shut, as if they dare say something critical, the “race card” is instantly thrown at them, given past mistakes, like the former poll tax on Chinese.
But like the Israeli government and some Zionists do, so do some Chinese, they knowingly take advantage of this historic embarrassment, for past mistakes, and hence demand rights and protection from ANY criticism, even when it is not at all directed at their actions for ethnic, cultural or such reasons.
People should think carefully, this cannot be about accusing Chinese or “Asians” for “invading” the local housing market, it is a justified concern by many New Zealanders. It just so happens, that in our region, there are many wealthy from some places in Mainland China and some other Asian countries, who look for opportunities, and for better environmental and other conditions, and so they try to take advantage of this.
In other places on the planet, it may be about “Poms” buying into Spanish real estate, about Continental Europeans buying Irish real estate, about oil rich Arabs buying into London, about also Russians, Chinese and so buying homes in the UK, in Munich, Zurich, Paris, New York, Vancouver and whereever else.
Twyford may need to sit down and think about how to raise such “issues” better, in a lower risk fashion, but throwing the “race card” at him, or blaming him for using it, I think is not quite fair. He made very clear that he is against any foreign buying of NZ real estate, unless some conditions may be met. He is rightfully concerned about better resource people from other places on our planet buying and pushing house prices out of reach of ordinary working New Zealanders. Let us have a discussion about this, without all these wild accusations.
Sorry for a mistake in above comment, it should read:
“The government is damned reluctant to bring in a foreign buyer register of sorts, and the announcement to gather tax details, and to expect such buyers to get a NZ tax number as from October, that in itself will not ensure that we will NOT continue to have some off-shore investors and also speculators buy residential real estate in New Zealand.”
I missed an important word in the right spot there! NOT is the word I missed.
Strangely there doesn’t seem to be much concern about wealthy American (and Brit) movie producers, rock stars etc buying up vast tracts of NZ land.
I suspect that you would hear an outcry, if such a group constituted 30% of the sales in that area. Does it?
Not true, Janine. There were protests and a hikoi to Parliament when it become known that Shania Twain was buying Motatapu high country Stations in 2004. That was probably the incident that brought this problem into the public arena.
Janine, that’s probably their arte so many fewer wealthy American (and Brit) movie producers, rock stars etc buying up vast tracts of NZ land?
But there is now a time to blow the whistle on all this when the cost by our future generations is at risk of never being able to afford their own home or don’t you care about your offspring (if you have any) ?
Remember the rule of life excellence is to do what our forefathers did, protect our future of those coming after, or “Pay it forward”
I did as a 70yr old as we helped our offspring to enter the property market and feel good that they have some future.
This was in the provinces not crazy overheated Auckland speculator market.
I certainly do oppose foreign investors buying up New Zealand but I reject the idea they’re all Chinese. Perhaps I’m wrong.
It would be very interesting to know exactly who has bought NZ this time around.
not hard to figure out who has control of the narrative – through msm
are the journalists in nz really this lame? or what
Having lived overseas for a number of years and returned in 2011, I have noticed that NZ seems very uneasy when discussing anything that might touch on race. In fact, the only people I meet who feel comfortable discussing race issues are Maori, Pacific Islanders and Chinese people. I find it odd that even identifying someone’s race is seen as somehow racist. In the past there have been plenty of criticisms of ‘cashed-up poms’ coming over and buying up our land. Now we are concerned about cashed-up Chinese people, it’s somehow racist.
Yes …..I think we are all over the guilt trip imposed on us from having the label ‘racist ‘ cast on us every time blunt , honest opinion about a serious situation is raised.
This is one such issue.
That ‘ racist ‘ label , ….has become a convenient bludgeon to shut down any dissenting views…. views which , more often than not , are backed up by reality – not necessarily by the govts reticence to provide the REAL facts and data out of fear of the public’s backlash.
The term ‘ racist ‘ is an incredibly emotionally loaded one – and they know that.
And easily wielded by those who’s vested interests may be threatened by the introduction of such a legal device as a Foreign Investors Register.
To label Phil Twyford as a ‘ racist ‘ …..becomes quite ludicrous in light of the fact that he is the MP in Te Atatu…and is placed in the ideal position to observe first hand the affects on that electorates peoples…and the negative effects that foreign speculation is having on many of them….
In that the electorate is , in fact , home to many who are on minimum wages that struggle from week to week – and for whom the reality of ever being able to own a home in Auckland is virtually unobtainable.
Many of Phils constituents are Polynesian – and yet he being a European New Zealander is now being branded as a ‘ racist ‘.
This in itself should demonstrate the hollow arguments and simplistic labeling of ‘ racism ‘ offered by such as ACT’s David Seymour , and of the National party’s unwillingness to provide a Foreign Investors Register.
Which leads us now to the glaringly obvious question of WHY ….is National so afraid to provide a Foreign Investors Register ?
The fact that National refuses to contemplate such a move would seem to suggest that they have too many self interests in having such a legal requirement.
And this is far from the tired old ‘ racist ‘ argument ender that has been overused for a long time now to shut down legitimate concerns raised.
In fact , …it ends up being a self parody in itself by those using it . In effect – self defeating. The simple fact is ….if there is vested interests by any govt to be loathe to curb over- speculation to the detriment of the local population – then it not only needs to be asked – it DEMANDS to be asked …..WHY?
Just WHO’ S interests ARE being served here?
This country’s ?
– Or those deals made with foreign govts by this govt that quite blatantly overrides the very needs of the citizens for which that govt was elected to represent.
It is becoming very clear now that the bluster , inaction , and hand wringing by this govt over the problem of the Auckland housing crisis – and those vested interests that are driving those very decisions of that inactivity – have patently NOTHING to do with racism – and EVERYTHING to do with pecuniary interests.
The labeling of Phil Twyford’s data in such a dismissive way as ‘racist ‘ ….therefore can now be seen for what it is in the clear light of day – a crude and emotive attempt by those whose self interests would try to prevent such a mechanism as a Foreign Investors Register simply because it would stymie a lucrative property speculation market .
And that knowingly sacrifices the future well being of their fellow New Zealanders at the altar of poverty for their own personal self interests.
A few practicalities Frank:
Firstly you can’t stop foreigners buying land or property. Sure you can enact a law as window dressing, but there are so many ways to get around it. One could have an NZ resident buy it for you. One could form a company to buy the land and own shares in that company (or are you planning to ban that too?). One could form a trust and have the trust buy the house.
Second, we don’t know who is Chinese and who isn’t. If Twyford is just looking at surnames in the register is he recording foreigners, residents, citizens or even the ancestors of Chinese who came here a century ago, maybe before our ancestors got here? It’s meaningless and it’s race-baiting in my view.
Lastly, it’s easy to reduce Auckland’s house prices:
1/ Ease up on the city’s ludicrous consent rules to allow densification
2/ Move the city boundaries and allow development
3/ Take a broom to Auckland Council and sweep out the rubbish: The overbearing rules and the people that apply them.
Only Auckland is experiencing significant house price inflation.
Only Auckland is experiencing enormous rates inflation
So the problem is with AUCKLAND and the people running it. Not the Yellow Peril.
So we are to presume that there are many ways around stopping people from overseas buying up property and speculating using trusts , relatives etc ….
Perhaps you should tell that pessimistic view to those govts overseas who have successfully reduced the options for speculative buying from foreign investors.
Or is New Zealand for some inexplicable reason an exception to all others ? – or is it more that certain individuals who stand to gain vast sums of money and lose equally vast sums of money if measures are put in place don’t WANT any disclosure due to the bad press they know they would receive?
I think if you were being honest you would admit this to be the case rather than blame it on those leaders in Auckland or some ‘pie in the sky ‘ ‘ cant be done here in New Zealand ‘ sort of rhetoric .
Heres my challenge to you if you are presenting that sort of bogus defense of these speculators – go to China , then see how far YOU get in buying not one, not two …but lets say a few dozen properties…..then develop them , and charge rents that are at the top end of the scale.
Then go on to buy up a few farms , industry’s….
I think you would find VERY smartly that the very things you say cant be done here in New Zealand were done very efficiently to you by the Chinese.
That is indeed a very weak and specious excuse for the sort of speculative foreign buying going on at the moment right here in New Zealand – and an argument given by those who stand to gain at the expense of those New Zealanders who can never be able to afford to compete against a foreign govt that enables its people to come here and speculate on such low interest rates..
Andrew, in response to your comments;
Andrew, there are many ways to gety around every law we have. By your “logic”, that means we should do away with them all?
One could.
But are you suggesting that, as a nation, we are so dumbed down that we cannot take appropriate measures?
You haven’t read my blogpost carefully, or have chosen to attribute meaning which I specifically avoided. To quote me;
“My position on this problem (I refuse to call it an “issue”) is clear and simple: land and housing should not be sold to non-New Zealand residents or citizens. If you want to buy a house or farm, become a citizen and move to New Zealand.
This applies to whether you are from Boston, Beijing, or Berlin ”
You’ve missed another salient point Andrew (wilfully?). Twyford has had to rely on those figures because the governmnt you support refuses to set up a foreign buyers’ register.
Why is that, I wonder?
After all, if National knew that foreign buyers constituted some ridiculously small percentage of buyers – then they’d be rushing to set up a Register to prove their position.
The fact that they haven’t set up a Register suggests very strongly that they have a good idea what the problem is and that the true statistics would horrify the majority of New Zealanders.
So, what are they hiding, Andrew? Do you have any inkling?
That’s all very well, but residents in a given neighbourhood might object to densification, leading to potential ghettos.
Tell me Andrew, do you support local democracy and people deciding what sort of communities we live in?
Or does commercialism trump everything in your world-view?
That is called urban sprawl, and comes with it’s own problems.
Tell me, Andrew, when city boundaries are moved and new development is allowed, who pays for infra-structure like roading, water, sewarage, telecommunications, bridges, public transport, etc?
It’s all very well demanding it – but who pays? Ratepayers? General taxation? Who?
That already happens every few years. It’s called local body elections. You do know about local body elections, Andrew? I trust you cast your vote accordingly?
Or are you pissed that it’s not your team who runs the city?
I think your entire monologue, Andrew, is a roundabout way of getting past the problem of foreign investors, speculators, and land bankers.
Hence your reference to “Not the Yellow Peril”. Attempting to reframe this problem in terms of racism is an attempt by National/ACT free marketeers to close down debate by throwing labels around willy-nilly.
We could spread Auckland out to double it’s area; build hundreds or thousands more houses, and it would all come to nought if investors/speculators bought most of them
Back to Square One.
You’re just wriggling on the hook.
It wasn’t National or Act who stole data from a land agent and went delving for “Chinese sounding names”.
It’s a sad day for Labour that they stoop so low. I expect to see resignations coming from those who morals stand higher than their blind support of the Party.
Helen, who signed the trade agreement with China which specifically provides for this trade must be wondering what the hell is going on back home.
Still deflecting from the problem of overseas investors buying up our houses, farms, etc, Andrew?
The only reason Labour resorted to using that information is that your precious government has steadfastly refused to collect the data. Why is that, Andrew? Why do you think National doesn’t want a Foreign Buyers’ Register? Any ideas?
Perhaps if National had collected the data in the first place, we wouldn’t be in this position and you wouldn’t be playing silly buggers counting angels dancing on the head of a pin.
As for the FTA with China – irony upon ironies; no New Zealander is permitted to buy land in China. Not one square centimetre. Not much of a fair deal, is it, Andrew?
So we got screwed there.
I wonder how much we’ll be screwed with the TPPA?
National do not mean us to become tenants, but serfs.
1000% Stuart, we will be servants to the idle foreign rich if this gores on.
Personally I don’t think Phil Twyford was playing the race card here. He was simply highlighting facts. But I guess it all comes down to interpretation.
When Parliament resumes the week after next, watch NatzKEY go into overdrive with this one, pointing grubby fingers at Labour, in particular Phil Twyford, screaming racists, xenophobes etc. Team FJK will dine out on it, possibly for weeks on end as a diversion tactic, to take the heat of its own corrupt, slimy activities!
NatzKEY will not address the property imbalance in Auckland!
I tend to agree, Mary. I listened to the interview twice. He chose his words very carefully.
I met Phil Twyford several weeks ago at a memorial service for a security guard who was slain whilst on duty in West Auckland.
We chatted … and I was struck by the mans obviously genuine and quiet reflective manner . One could tell it was not in his temperament to be given to loud , bombastic sweeping generalizations. He had a firm grasp on exactly what is going on nationally and in his electorate.
And not only was he the MP fot Te Atatu – where there are many struggling family’s in minimum wage type jobs – he is also the Labour spokesman on Housing .
That said – I doubt very strongly if he merely got involved for mere political points scoring. His sincerity bespoke far more of a man who genuinely has a case that needs answering by this Govt.
Yep Wild katipo,
Phil is a gem, withn a genuine caring characteraright.
We asked him to come to HB Gisborne March 2012 and he dis so when we were fighting to get support for our rail.
He was the best we had.
Frank, very good analysis. I have done some research which suggests China is either 3rd or 4th of the foreign countries buying land in NZ the top two seem to be USA and the UK.
The Twyford presentation on Q&A this morning was based on Chinese surnames – forget about the Germans and others. I hope the outstanding former mayor of Dunedin – Peter Chin has not purchased property in Auckland in recent times!
Twyford needs to be sure he has his ducks in a row or Labour will pay at the ballot box. I am not Chinese, but do not like seeing one race being selected from many to highlight some political agenda
Thanks, Grant. From what I’ve read, most farms in the South Island are owned by European or US interests. American Harvard University is a big buyer of farmland, with plenty of capital behind them.
See my 2012 blogpost here: https://fmacskasy.wordpress.com/2012/01/29/land-sales-a-sorry-saga-of-sheer-stupidity/
Frank, we should not forget James Cameron’s extensive purchase in the Wairarapa, Julian Robertson’s at Kauri Cliffs, Cape Kidnappers and Matakauri Lodge. Yet Twyford is totally focused on Auckland City. Part of the Auckland City problem appears to relate to local government, not helped by the influx of people returning home from Australia and the UK.
At the risk of sounding like a broken record, Grant, we simply don’t know that. This government refuses to collect necessary data.
We do collect the net inflow outflow data. The inflow is part of the problem.
???
Care to elucidate, Grant?
Delighted to Frank, NZ immigration website reported a net gain of 53,000 for 2014 (23,000) chose Auckland as their destination. October 2014 the net gain was I think 5,300 for the month and November was 5,000. The previous largest monthly influx was 4,700 in 2003.
The figures after December are a bit difficult to determine, but I cannot envisage the trend has changed.
I think we should go further than this. I believe that no land in NZ should belong to any individual. It should belong collectively to all New Zealanders and be administered by the state. “Ownership” should mean ownership of the assets on it – the house should be ‘owned’ as a long term leasehold and the services are owned as now by the local Council. An annual land tax should replace rates.
THe point of this is that the increase in house prices that we are seeing now, is really an increase in the price of land itself. This is why 22,000 houses are standing empty in Auckland right now, making a profit for their owners simply by the ongoing price increases.
If land value is removed from sales value, there would be no significant increase in the price of the houses themselves, just as second hand cars do not increase in price.
Hear hear Dennis. I have always favoured the concept of collective land ownership, in the form you suggest.
Now we wait for hands being thrown up in horror at the thought of it, along with the “C” word being played here, in response!
Hear hear Dennis. I have always favoured the concept of collective housing, in the form you suggest.
Now we can wait for the hand wringing and the “C” word to be played here, in response to your post!
Prices would probably still rise, due to competition for the best locations. However, provided rent increases kept pace with increases in the value of land, such an arrangement would tend to slow such increases in price. It would almost certainly discourage speculation and land banking, and also provide revenue for the government.
I’m not sure that, over a long period ( and I would imagine that tenacy agreements would be 99 year leases) ‘location’ would make much difference. Locations tend to go in and out of fashion. It is quite common for old areas to fall into a stage of disrepair until they suddenly become ‘fashionable’ again.
I think we should go further than this. I believe that no land in NZ should belong to any individual. It should belong collectively to all New Zealanders and be administered by the state.
I can think of a number of iwi who might have an opinion on that.
I do not think that Auckland [ NewZealand ] should be selling so many houses to non New Zealanders . China does not practice this type
of foreign policy [but they are certainly able to see overseas property opportunities to assist their expansion in the world].
I also think that NZ needs to solve the growing POVERTY problem here, before increasing immigration as lack housing for our people is a big part of that problem. It is simplistic to not really look at this issue.
Many in Auckland can see the problem and do not want to be racist and do not think that Phil Twyford is a racist person.
and aucklander’s
If you think that this is not an economic colonisation of New Zealand by the Chinese government, you all have your heads in the sand.
My namesake Winston pointed out his disgust at the links between Chinese banks and Jenny Shipley in:
Chinese banks and ex National leaders
Don Brash also has links with them.
No wonder Twyford’s statistics have ruffled the feathers of the Natz. I’m not xenophobic. If the Lees, Lius and Yangs in Twyford’s data are NZ citizens, no problem.
If they are Chinese agents of their government, buying real estate and syphoning rent money out of New Zealand into Chinese banks, then that’s not on.
Set up a proper register of buyers and identify ethnicity AND their country of residence.
Hear hear to that !!!
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