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Speaker 1: I've got an issue brewing apparently around our luxury rental

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Speaker 1: market and the looming foreign buyers changes. So agents telling

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Speaker 1: us they're turning away half of the high net worth

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Speaker 1: travelers because demand out strip supply.

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Speaker 2: Now.

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Speaker 1: Greg Owen's the co founder of a company called State

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Speaker 1: Lucks Accommodation and is with us.

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Speaker 2: Greg morning, Good morning mate.

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Speaker 3: Has this been building?

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Speaker 2: Has this been building for a while?

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Speaker 1: I mean, as far as I know, there's plenty of

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Speaker 1: houses and places like Central a Tiger, you know, if

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Speaker 1: you want a flash place to stay.

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Speaker 3: Yeah, that's great, there are. But more and more of

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Speaker 3: these luxury travelers that are coming to New Zealand are

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Speaker 3: looking for extended stays in Auckland. In Auckland seems to

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Speaker 3: be a real lack of luxury combination that's available.

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Speaker 2: And when you say extended stay, what's that mean?

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Speaker 3: You we're from from three weeks up to twelve months. Well,

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Speaker 3: the individuals are coming to stay for but that's.

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Speaker 1: Just a rental twelve months. That's just a rental house,

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Speaker 1: isn't it.

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Speaker 3: It is it is, but it's not just in that case.

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Speaker 3: And since that these these people are looking for fully

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Speaker 3: furnished property, they're looking for residences that go beyond your

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Speaker 3: standard typical rental property.

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Speaker 1: The only place you would get like that is somebody

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Speaker 1: who's got a flash house is on sabbatical overseas for

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Speaker 1: a period of time, isn't it. I mean, no one

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Speaker 1: in this country owns a twelve to fifteen million dollar

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Speaker 1: house and leaves it fully furnished and then just rent

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Speaker 1: it out.

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Speaker 3: You'll be surprised there are a number that do that.

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Speaker 3: But yes, a lot of the time, a lot of

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Speaker 3: these people they're looking, they've relocated, they've got their house,

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Speaker 3: they're just idlenk sitting there. And is an opportunity to

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Speaker 3: be able to contributed to the demand that's required at

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Speaker 3: the moment in Auckland.

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Speaker 2: Where's the foreign buyer thing coming? Are?

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Speaker 1: Are they potentially going to start snapping these places up

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Speaker 1: and therefore they'll never be for rent.

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Speaker 3: Well, that's the other option for you having the foreign

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Speaker 3: buyers and people that are buying when they do come here.

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Speaker 3: If they do they buying New Zealand, they're not likely

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Speaker 3: to be staying here for twelve months, but they may

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Speaker 3: look too be able to rent their property out as well,

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Speaker 3: and to be able to provide that shortage of accommodation

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Speaker 3: for these luxury gifts that are coming.

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Speaker 1: I suppose this is all good news that there is demand.

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Speaker 1: Are they mainly Americans predominantly?

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Speaker 3: We're seeing inquiries coming predominantly from America and Europe. The

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Speaker 3: United States in Germany are the two areas that we're

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Speaker 3: seeing significant increase.

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Speaker 1: From good So is their demands This is a bullish

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Speaker 1: story to tell.

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Speaker 3: I think, so, look, there is demand, there is real increase.

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Speaker 3: We've seen probably double the amounts of inquiries coming through

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Speaker 3: Compete to this time last year. The challenge we face

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Speaker 3: is that there is a real shortage, so we can't

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Speaker 3: put these individuals into the residents that thereafter, particularly in Auckland,

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Speaker 3: and so they're generally looking to stay in your larger hotels,

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Speaker 3: and unfortunately with the hotels, you've got hotels that are

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Speaker 3: owned internationally and so largely the profits are going offshore

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Speaker 3: for hotel owners.

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Speaker 1: Interesting insight on your grief, appreciated, Greg ow and Owen,

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Speaker 1: who's the co founder of stay luxA read over the

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Speaker 1: weekend Sydney Morning Herald they were handing out there were

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Speaker 1: born again the greatest revamps and reinventions and travel this

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Speaker 1: year and top of their list was the reinvention or

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Speaker 1: the refurb of hook A Lodge no less in New Zealand.

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Speaker 1: So it's getting a good buzz internationally, at least in Australia,

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Speaker 1: so let's hope it works well for them.

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Speaker 3: For more from the Mic Asking Breakfast listen live to

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Speaker 3: news talks.

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