New Zealand has just signed a law banning foreigners from buying residential property to cool off the housing market. The law mainly applies for existing properties though, foreigners will still be able to buy into new apartments.

"If you've got the right to live in New Zealand permanently, you've got the right to buy here. We believe it's the birthright of New Zealanders to buy homes in New Zealand," Trade Minister David Parker said Wednesday.

Auckland has been ranked as one of the least affordable place to buy a home a number of times and according to the data from central bank, the house prices have almost doubled over the past decade.

Although the government sees a problem with foreign buyers, the official statistics show that foreigners account for only up to 3 percent of total transactions. And most of those buyers are from China.

So whether the new law will make any difference at all is still unclear. And the law won't apply for Australians and Singaporeans since there are certain arrangements in place with these countries.

In June New Zealand also announced its plan to start taxing foreign visitors, which would take effect second half of 2019, and would be between $17 to $24. According to estimations, this tax would raise anywhere between $42 million to $56 million in its first year. Again, Australians as well as citizens of nearby Pacific Island nations will be exempt from the tax.