New Zealand has a similar housing problem. House prices are skyrocketing and pricing out young people. A 25-30% rise in the past year has meant few people are saving fast enough to get a deposit.
But two or three years ago the govt. banned overseas buyers. There is no reason to suggest the ban is not effective. It even bans non-permanent residents, so plenty of legitimate residents (work visas) can't purchase property.
We also have strong money laundering laws, to the point of making tech innovation difficult (our prediction market run by a university had to move to the USA).
Yet it didn't stop or even dent runaway house prices.
Turns out the overseas investors (and immigrants) were just a good scape goats for lots of other problems.
Edit: People overseas I have mentioned this struggle to belive it and suggest the ban must not be working. Yet nobody here suggests it is not. We have supply issues, transport issues, ridiculous construction and material costs and lots of regulations. Old houses are sold at prices relative to new houses. If new houses cost more and more, old houses also increase in value, especially since they are on the best land (not in new far away outer suburbs).
But two or three years ago the govt. banned overseas buyers. There is no reason to suggest the ban is not effective. It even bans non-permanent residents, so plenty of legitimate residents (work visas) can't purchase property.
We also have strong money laundering laws, to the point of making tech innovation difficult (our prediction market run by a university had to move to the USA).
Yet it didn't stop or even dent runaway house prices.
Turns out the overseas investors (and immigrants) were just a good scape goats for lots of other problems.
Edit: People overseas I have mentioned this struggle to belive it and suggest the ban must not be working. Yet nobody here suggests it is not. We have supply issues, transport issues, ridiculous construction and material costs and lots of regulations. Old houses are sold at prices relative to new houses. If new houses cost more and more, old houses also increase in value, especially since they are on the best land (not in new far away outer suburbs).