Chinese property mogul tours NZ in private jet

  • Breaking
  • 25/02/2015

A private jet belonging to one of China's richest property tycoons has been touring New Zealand with a delegation likely to be scoping out investments.

It comes as the country's banks warn foreign investment is flooding money into New Zealand and pushing up house prices.

The jet belongs to one of China's richest men – Xu Jiayin. He owns Evergrande Group, the second-largest property developer in China. Mr Xu's personal wealth is around $9 billion.

Last year he flew a delegation around Australia lining up investments, the visit coinciding with a report revealing banks are concerned about foreign cash putting serious pressure on the property market.

Finance Minister Bill English admits it's "probably" an issue.

"There probably is some coming in," says he says. "It probably is having some impact, but we don't think it's the largest influence by a long way."

The KPMG report, which surveyed the country's banks, found there is a lot of money flooding into the New Zealand market from overseas.

"The risk for New Zealand is that while all this money comes flooding in and creates over-inflated prices, New Zealanders are forced to buy at these over-inflated prices," reads the report.

The Government refuses to monitor or restrict foreigners buying up houses, which contrasts with across the Tasman, with Prime Minister Tony Abbott today announcing a crackdown in a new register of foreign ownership. There will be big fines if foreigners are caught buying homes; they are required to build new ones.

It seems today's visit was yet more evidence of the foreign buyers issue, and it's hard to miss – a jet, owned by a Chinese property billionaire, travelling around the country.

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source: newshub archive