Luxury real estate push: New Zealand relaxes foreign buyer rules; targets top-tier investors

New Zealand will now allow foreign investors to buy property, partially reversing a seven-year ban introduced to curb soaring house prices. The restriction, introduced by former prime minister Jacinda Ardern in 2018, aimed to cool the housing market, which had surged due to high migration and limited housing supply.

At the time, Australians and Singaporeans were exempt under trade agreements, while other foreign buyers were largely restricted. Under the new rules, coming into effect by the end of the year, holders of the Active Investor Plus residency visa can purchase or build homes worth NZ$5 million (around USD$2.95 million). The scheme requires applicants to invest at least NZ$5 million over three years. Prime Minister Christopher Luxon said the NZ$5 million threshold “navigates a path between those who do not want foreign ownership opened up, and the desire to attract high net worth investors.”

New Zealand’s remoteness, once seen as a hurdle, has made it popular among ultra-rich foreigners seeking a secure residence. High-profile cases include billionaire and PayPal founder Peter Thiel, who became a citizen in 2011 and planned a large private estate, sparking controversy when it emerged he spent only 12 days in the country. House prices in New Zealand have fallen in the past two years after rising more than 30 percent in some regions during the pandemic. Yet, housing supply remains tight, and home ownership continues to be difficult for many locals.