High-Value Property Access Returns: What the New Foreign Buyer Rules Mean for NZ
High-Value Property Access Returns: What the New Foreign Buyer Rules Mean for NZ
The Government has lifted part of the ban on foreign buyers—wealthy international investors holding the “golden visa” can now purchase a single residential property worth at least NZ$5 million, even without spending six months a year in New Zealand. This marks a significant policy shift aimed at balancing economic stimulus with housing market protection.
What’s Changed
- Golden visa holders (Active Investor Plus pathway) can now buy one residential home costing NZ$5 million or more, even if they aren’t residing in-country for six months annually.
- In April, eligibility for these visas was already made easier—investment thresholds were lowered (e.g., from NZ$15M to NZ$5M for high-risk investments), and the English-language requirement was removed.
- Fewer than 1% of NZ homes meet the NZ$5M threshold—with approx. 80% in Auckland and 10% in the Lakes District.
What They Can and Can’t Buy
They can buy:
- A single residential property valued at $5 million or more.
- The purchase can be for their own use (residence or holiday home) without needing to spend six months of the year in New Zealand.
They cannot buy:
- Sensitive land — which includes certain rural, coastal, and lakefront areas.
- In particular, lakefront property in Wānaka and other sensitive zones within the Lakes District remains restricted, protecting iconic landscapes and public access.
Why This Matters
- Selective access: By limiting eligibility to the highest-tier homes, the government aims to safeguard overall housing affordability.
- Economic strategy: Attracting wealthy investors could inject substantial capital—visa applications alone may bring in up to NZ$1.8 billion.
- Political compromise: This partial reversal reflects a middle path between preventing foreign ownership and drawing global investment.
Prime Real Estate Perspective
At Prime Real Estate, we believe this strikes a good balance compared to the free-for-all seen prior to 2018. The new rules allow high-net-worth individuals who have already committed large amounts of money into our economy to purchase one property valued at over $5 million.
This is a far better outcome than in 2018, when individuals were buying up large numbers of lower-end properties, many of which were left sitting empty. The current policy ensures that investment is directed at the top end of the market, where it can have a positive effect on the local economy, supporting trades and creating flow-on jobs.
We are also interested to see further detail from the Government on rules for buying sections and the timeframes required for building on these properties. These details will be crucial in understanding the true impact of this policy on communities like Wānaka.
References
Prime Real Estate
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