New Zealand Lifts Foreign Buyer Ban on $5m Luxury Homes

Wealthy foreign investors will once again be able to buy or build luxury homes in New Zealand, following a major policy reversal designed to inject fresh capital into the nation’s struggling economy.

Prime Minister Christopher Luxon confirmed that foreigners holding the reintroduced investor migrant visa will now be permitted to purchase or construct one home worth at least NZ$5 million (A$4.3 million).

The change carves out an exception to New Zealand’s long-standing ban on overseas property owners

hip, which has been in place since 2018.

Luxon described it as a balance between public concerns about foreign ownership and the government’s need to attract high-net-worth individuals.

“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,” Luxon said.

A ‘golden visa’ rethink

The shift builds on April reforms to the “Active Investor Plus” residency visa. Under the new settings, the minimum funds required for higher-risk investments were slashed from NZ$15 million (A$13m) to NZ$5 million (A$4.3m), and the English-language requirement was removed.

Authorities have already received 301 applications. If all are approved, the scheme could inject at least NZ$1.8 billion (A$1.54b) into the economy.

Foreign home ownership has long been a flashpoint in New Zealand politics, with locals blaming overseas buyers for driving up property prices. Luxon stressed that the reform would have little impact on the broader housing market, noting that fewer than 1% of homes nationally are valued above the NZ$5 million threshold.

Lifestyle as a drawcard

For many potential investors, the appeal lies as much in lifestyle as in residency.

“It really enhances the proposition,” said Mischa Mannix-Opie of Greener Pastures, a firm advising investor visa clients.

“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.”

Economy in focus

The reform arrives as New Zealand faces ongoing economic headwinds. After slipping into recession in late 2024, the economy has struggled to regain momentum through the first half of this year.

By reopening the ultra-luxury housing market to overseas investors, the government hopes to lure capital inflows while reinforcing New Zealand’s image as a global lifestyle destination for the wealthy.