New Zealand based the Green Party has urged the government to introduce capital gain tax on the reality sector and government machinery is said to be looking to materialize the demand.
Terming capital gain tax on property as his party's long standing policy, Green Party co-leader and finance spokesman Mr. Russel Norman anticipated another housing bubble in coming times.
Mr. Norman said that reality boom in the past has made housing very unaffordable for masses, adversely impacting economy and creating social unrest due to very high prices of houses. However, Party's move is being considered as an effort to cool down housing prices and it has nothing to do with the matter to increase revenue of cash-strapped government with huge budget deficit.
Norman added, "English needs to show the courage to do what's right because New Zealanders cannot afford another doubling in the price of housing in the next five years. It would be catastrophic."
The economic forecaster Info metrics says that housing prices may increase 11 per cent in coming year given to low interest rates. It forecasts an average 8 per cent growth in housing rates in next three years.