Sale of land to foreign buyers

Do we want foreigners to buy our farmland? This is an issue which worries many New Zealanders. This week we heard of two possible farm sales to foreign buyers. One is a 1,037ha farm near Gisborne. The buyer already owns another farm near Gisborne.

The other possible sale is a 13,800ha farm called Lochinver, near Taupo. It is valued at $70.6m. The company which wants to buy this land is Shanghai Pengxin which last year bought the Crafar farms. Listen to January 29 2012 to hear more about the sale of the Crafar farms.

Any land purchase by a foreigner has to be approved by the OIO – Overseas Investment Office – and must be of substantial benefit to the New Zealand economy. It must also provide jobs for New Zealanders. However, the President of Federated Farmers said he felt “uneasy” about the sale of Lochinver to Shanghai Pengxin. He wondered whether there would be much benefit to New Zealanders.

Of course farmers who want to sell their land are happy when they can find a buyer with “deep pockets”. It means they can get a good price for their land. But it also means it is hard for New Zealanders to buy land.

The Prime Minister, John Key, said that in recent years, about 39,000ha of land have been sold to foreigners each year. He said this is not a lot of land, only between 1% and 2% of all rural land in New Zealand

Vocabulary

• an issue (n) – a matter, something that concerns or worries people
• purchase (n, v) – something you buy
• approve (v) – say “Yes”
• substantial (adj) – very great (benefit)
• uneasy (adj) – not a comfortable feeling, a bit worried
• deep pockets – an idiom. It refers to pockets where you keep your money.

Questions

1. Can foreigners buy rural land in your country?
2. Can foreigners buy houses in your country?

1 thought on “Sale of land to foreign buyers”

  1. In my country , land only belongs to the government , you can only buy the right to use this land for certain years , house also follow his policy , but only for 70 years

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