So here we go. Just like in Ireland. I wonder if every bubble plays out the same way?

Piesters will recall that Irish prices had already stalled and gone into reverse months before Michael McDowell started rambling about stamp duty. In fact McDowells comments were originally designed to try to reinflate the bursting bubble. But of course in the popular narrative "uncertainty over stamp duty" then became the cause of falling prices, in defiance of the laws of physics and basic sanity. There were more time-travelling shenanigans later in the saga, when the collapse of Lehman Bros in Sept 2008 caused Irish property prices to start falling in Q4 06/Q1 07.

So too in Kiwiland, "banning foreign buyers" will become the cause of falling prices even though they've been stalled and falling since well before the election (that National were expected to comfortably win).

Humans really are pretty Stoopid creatures.

House prices tipped to fall over the next three years - NZ Herald