New Zealand to allow some wealthy foreign investors onto property market

WELLINGTON, New Zealand — New Zealand will relax its ban on most foreign residential property purchases to allow a limited number of wealthy overseas business investors to buy a single high-value home, Prime Minister Christopher Luxon said Monday.

Under the change, holders of a residency "golden visa" reintroduced by Luxon’s government in April will be eligible to purchase one residential property valued at no less than 5 million New Zealand dollars (about $3 million). The government said the move is intended to attract significant business investment while limiting effects on the wider housing market.

Luxon said the adjustment stops short of a full reversal of the 2018 policy, which barred most nonresidents from buying existing homes and was introduced by the previous government to cool a housing market that had been driven by speculation. He described the change as a balance between drawing wealthy investors into New Zealand’s economy and allaying fears that foreign purchases will further inflate house prices.

The golden visa program grants residency to applicants who commit to investing at least NZ$5 million in New Zealand businesses over three years, or NZ$10 million over five years if the funds are placed in lower-risk investments. Some prospective visa holders had been prevented from buying property under the earlier ban; the new rule will allow those meeting the visa and property-value thresholds to purchase a single dwelling.

Officials emphasized that the eligibility is narrowly targeted and will apply only to a small number of high-value purchases. The government did not immediately provide a cap on the total number of residential sales that could be made under the exception or a timetable for implementation.

Housing advocates, economists and opposition politicians have in the past argued that foreign buyer restrictions were necessary to reduce demand-driven price pressures and improve affordability for New Zealand residents. The government’s announcement seeks to preserve that principle while creating an incentive for wealthy foreign investors to direct capital into New Zealand businesses rather than the broader residential market.

The reintroduction of the golden visa program in April was presented by Luxon’s administration as a tool to attract experienced international investors and entrepreneurs who could help grow domestic firms and jobs. The change to property rules aligns the residency pathway more clearly with the program’s economic aims, officials said.

Any additional details about implementation, including safeguards to monitor the impact on house prices and whether the government will place limits on resale or rental of properties bought under the exception, were not released with Monday’s announcement. The government said it would provide further information as the policy is finalized.