New Zealand will allow wealthy foreign investors to purchase or build one luxury property worth at least NZ$5 million (A$4.3 million), in a reversal of its ban on overseas buyers.
The move is aimed at attracting high-net-worth individuals and bolstering the country’s sluggish economy.
Prime Minister Christopher Luxon said that foreigners holding the reintroduced investor migrant visa, launched in April, will now have the option to buy or construct a home if it meets the NZ$5 million (A$4.3 million) threshold.
Previously, such visa holders could not purchase property unless they spent more than six months of the year living in New Zealand.
“This change navigates a path between those who do not want foreign ownership opened up, and the desire to attract high net worth investors by deepening their ties to our country to help grow the economy,” Mr Luxon said.
Golden visa programme revised
Reuters reported The housing rule shift follows April reforms to the “Active Investor Plus” residency visa.
The government reduced the minimum required funds for higher-risk investments from NZ$15 million (A$13 million) to NZ$5 million (A$4.3 million) and removed the English language requirement.
Since then, authorities have received 301 applications.
If all are approved, it could generate at least NZ$1.8 billion (A$1.54 billion) in new investment.
Foreign ownership of homes has been politically sensitive in New Zealand, with many locals blaming overseas buyers for driving up prices.
A Labour-led government banned most non-resident foreigners from buying existing homes in 2018.
Mr Luxon said fewer than 1% of homes nationwide are valued at more than NZ$5 million (A$4.3 million), meaning the change would be limited to the very top end of the market.
Lifestyle attraction
For some investors, the chance to buy a home is a drawcard as much as the visa itself.
“It really enhances the proposition,” said Mischa Mannix-Opie of Greener Pastures, a firm helping clients secure residency through investment.
“For many people, it’s lifestyle that attracts them to New Zealand, and being able to buy a home would help them achieve that lifestyle.”
The decision comes as New Zealand grapples with a weak economy, having slipped into recession in late 2024 and struggling to regain momentum through the first half of this year.
