KIWI NATIONALISM: FOREIGN HOUSE BUYERS TOLD TO SLING THEIR HOOK

Following the unlikely pairing of Winston Peters's nationalist New Zealand First Party and the centre-left Labour Party in a ruling coalition, following New Zealand's recent election, things are looking up for the island nation of 4.7 million, with more sensible policies making it into the mix.

The latest good news for ordinary New Zealanders is a new ban on oversees buyers purchasing homes. This will stop speculative foreign money flowing into the housing market and pushing up property and rental prices, which makes it harder for young New Zealanders to set up home. 

As reported by Yahoo News (Australia): 

"Overseas buyers will no longer be allowed to purchase existing homes in New Zealand, Prime Minister-elect Jacinda Ardern declared as she unveiled a raft of policy deals made with her coalition partners. The move to tackle soaring property prices was agreed during lengthy negotiations between the Labour Party leader and populist powerbroker Winston Peters to form a new government that also includes the Green Party."

Since the new government took power, Ardern has also announced plans to slash immigration from 70,000 a year to 40,000, although Peters wants a 7,000-a-year cap. Responding to the news, Peters, who is set to be deputy PM and foreign minister in the new government, said the country is "no longer for sale."

"There is going to be a change and a clear signal sent internationally that New Zealand is no longer for sale in the way it has been. We're happy with that," he said.

Much of the speculative money in the housing market comes from China and India, and also helps to fuel immigration.

The New Zealand political situation is well worth keeping an eye on as it shows how rising nationalist parties holding the balance of power can exert beneficial influence on their countries, a pattern we hope to see a lot more of in coming years. 

A case of the tail (Peters) wagging the dog (Ardern)?