New Zealand passed legislation Wednesday limiting the sale of residential properties to citizens and permanent residents but buyers from certain countries can still take advantage of the Kiwi housing market.

The Overseas Investment Amendment Bill, which entitles citizens and foreigners with residency status to buy homes, passed its third and final reading in the House.

Policymakers had been mulling the ban on sales to foreigners to temper fast-appreciating home prices thought to be galvanised by overseas speculators and holiday home owners. "This government believes that New Zealanders should not be outbid by wealthier foreign buyers," said Associate Finance Minister David Parker in a statement.

"Whether it's a beautiful lakeside or oceanfront estate, or a modest suburban house, this law ensures that the market for our homes is set in New Zealand, not on the international market."

Due to international trade agreements, citizens and permanent residents from Australia and Singapore can still buy property in the country. 

The legislation will not affect homes already sold to foreigners in retrospect. 

Source : Property Report - Photo : PropGOluxury / Wilding Road, Lake Hayes