Wealthy foreign investors may soon be able to buy property here

Wednesday, 23 July 2025

The foreign buyer ban, introduced by Labour, may be tweaked so wealthy investors can buy homes.

There may well be a queue of “high quality” overseas buyers, one real estate expert suggests, as the Government has signalled it’s in talks to soften the foreign buyer ban for wealthy investors.

NZ First leader Winston Peters on Wednesday agreed he was open to foreigners who invested millions into the economy buying property in New Zealand. Previously the party opposed a National proposal that would see foreigners allowed to buy homes worth more than $2 million, if they paid a tax.

Prime Minister Christopher Luxon would only say the Government was having “ongoing conversations” about the ban, introduced by the Labour-coalition Government (with New Zealand First) in 2018 through the amendment of the Overseas Investment Act.

Winston Peters says he’s open to foreign investors who plough money into the economy, buying property.

“I don’t want to get ahead of those [talks]. When we’ve got something to say we will,” Luxon said on Wednesday .

He expected an announcement this year.

Deputy Prime Minister David Seymour, responsible for the Overseas Investment Act, previously opposed the ban and on Wednesday said his party respected its coalition commitment with New Zealand First not to lift the restriction on overseas investors.

“However, if New Zealand First changed that position, well, there wouldn't be any complaints. For me, I'd be there with bells on because I think allowing our friends around the world to come to our country, bring their money and live here is, generally, there's exceptions, but generally a win for New Zealand.”

Labour introduced the ban in response to the housing shortage. At the time, then Trade and Economic Development Minister David Parker said it was a significant milestone that would help make home ownership a reality for Kiwis.

“This Government believes that New Zealanders should not be outbid by wealthier foreign buyers,” he said.

“Whether it's a beautiful lakeside or ocean-front estate, or a modest suburban house, this law ensures that the market for our homes is set in New Zealand not on the international market.”

The Government says its golden visa has been in demand.

Seymour, at the time, labelled it “the stupidest bill I’ve seen in years”.

Queenstown-based luxury real estate agency Sotheby’s International Realty said it had seen a sharp rise in overseas interest, despite the ban.

Managing director Mark Harris said offshore web traffic and buyer inquiries had picked up significantly over the past six to 12 months, particularly from the United States.

“We're probably dealing with a high-quality inquiry on a weekly basis,” he said.

“Often we're saying thanks, but we can't deal with it. In fact, I did this literally yesterday with a Swiss couple.”

Harris said a change to the rules would not only unlock demand from foreign investors but also increase the supply of high-end property.

“The buyer pool would open up, and so it stimulates supply as well as demand.

“I think given the state of the economy and the slow turnaround that we're witnessing, that we should be encouraging investment in the right way.”

Likewise, Sotheby’s Wellington managing director Glen Jones this week wrote in The Post that the ban was ripe for reform to stimulate an ailing property market.

“It’s a conflicting, paradoxical stance, especially when we’ve recently created investor visas encouraging people to move here and build businesses - yet still block them from buying a house,” he said.

In June the Government described a “flood” of interest in its new Active Investor Plus visa, a so-called golden visa which allows wealthy foreigners the ability to gain residency through investment. In less than three months there had been 189 applications which represented a potential $845m of investment.

Mark Harris said overseas buyers were drawn to different regions for different reasons, from the mountains and lifestyle of the Southern Lakes to the beaches and waterfront homes of Auckland and Northland, whether they were high-end apartments or large lifestyle blocks.

But he believed easing the rules for wealthy buyers would not affect the broader housing market, provided a high price threshold is in place.

“If there's someone who's invested $5m into getting a visa, and then on top of that there's a value hurdle of $4m or $5m then I don't think that affects the average domestic residential purchaser, particularly first-home buyers, if that's the market that we're specifically trying to protect.”