An economist says foreign investors are already turning away from New Zealand, because they see our current regulations as too restrictive.

Coalition discussions continue today, with New Zealand First undoubtedly pushing hard to restrict foreign property sales.

Eric Crampton said the fact government approval is already needed for significant foreign purchases, is turning investors towards other countries.

"But just the process can be burdensome. Nobody wants to have their capital tied up for years while they're waiting for a decision, now while it's not years anymore but it's burdensome."

LISTEN ABOVE AS ERIC CRAMPTON SPOKE TO THE MIKE HOSKING BREAKFAST