Drop in Chinese home buyers in Auckland

There's been a drop in the number of Chinese buying up houses in Auckland.

National home value growth has dipped below 5 percent for the first time in five years, and Auckland's growth has dropped to what it was six years ago.

QV spokeswoman Andrea Rush says developers are having to drop house prices in Flat Bush and Albany so they can sell them.

"It's possible that the crackdown by the Chinese government on the amount of capital allowed to leave the country may be a factor, as it's now much harder for new migrants or foreign buyers from China to get their cash out to purchase property her."

Ms Rush says whether that market builds back up "really depends on the Chinese government".

"The situation has really run parallel with the slowing in the New Zealand market since late last year when [the Chinese Government] did crack down on the slow of capital.

"It was right around the time our Government introduced restrictions on investors, so it's difficult to know to what extent that has played a factor in the slowing of the housing market here."

Ms Rush says uncertainty around government and housing policy changes could also be causing people to put their plans on hold.

"A number of buyers decide to take a wait until after the election when things are clearer in terms of how the market may be moving forward."

The Government has previously denied a link between foreign buyers and rising house prices. Labour has promised to ban foreign buyers from owning residential property.

Newshub.