An agent from Auckland's biggest residential real estate agency says "some groups of buyers" are trying to beat the Government's new restrictions on foreigners from October.
Kevin Liu, of Barfoot & Thompson's Onehunga office, sent a letter out to home owners in his area, asking them to get in touch if they were thinking of selling.
This is because there was steep demand from "some groups of buyers" that he said would be affected by a new law due to come into effect from October 1.
To get around new tax and banking restrictions, those buyers now wanted places, he indicated.
Mr Liu wanted to list more residential properties so he can meet that demand, which is exacerbating an already short listings supply, he said.
"At the moment, we are seeing an upward spike in demand for property as some groups of buyers trying to buy before these changes take place."
That is a reference to the Taxation (Land Information and Offshore Persons Information) Bill, now before Parliament's finance and expenditure select committee.
If passed, the law would gather information for Land Information New Zealand and Inland Revenue about overseas buyers.
Barfoot & Thompson has been at the centre of Labour Party claims this month, after data was leaked indicating Chinese buyers were targeting Auckland.
Mr Liu said the new proposed law was already having a big effect on the market.
"You may have heard on the news recently or read in the paper the changes which are taking place on 1 October, 2015. These are likely to have an impact on property values."
Mr Liu outlined the changes as:
• Requiring non-residents and New Zealanders buying and selling nay property other than their main home to provide a New Zealand IRD number.
• Requiring non-residents to have a New Zealand bank account and to get a New Zealand IRD number.
• Introducing a new 'bright line' test to tax gains from residential property sold within two years of purchase, unless it's the seller's main home, inherited or transferred in a relationship property settlement.
• Require residential property investors in the Auckland Council area using bank loans to have a deposit of at least 30%.
