New Zealand Eases Foreign Home Buying Ban for Wealthy Investors

New Zealand will relax its ban on foreign property ownership to allow wealthy overseas investors to purchase a single high-value home, Prime Minister Christopher Luxon announced on Monday.

The decision marks a partial reversal of a 2018 ban designed to cool soaring house prices, which at the time were blamed in part on overseas speculation. Under the new rules, holders of the government’s recently reintroduced “golden visa” will be permitted to buy one residential property worth at least NZ$5 million (US$3 million).

Luxon said the change strikes a balance between encouraging foreign investment and protecting affordability in the housing market. “This is not a wholesale reversal,” he stressed. “It will apply only to a very small number of people and a very small proportion of homes.”

The golden visa, relaunched in April, grants residency to those investing a minimum of NZ$5 million in New Zealand businesses over three years, or NZ$10 million over five years in lower-risk assets. Some investors had been barred from buying property because they did not reside in the country for at least six months annually. That restriction has now been lifted.

Opposition Pushback

Critics swiftly condemned the move, arguing it prioritizes wealthy foreigners while ordinary New Zealanders struggle with affordability.

“Many Kiwis are already finding it impossible to buy their first home, and this decision makes it worse,” Labour’s housing spokesperson Kieran McAnulty said. “Homelessness is up, unemployment is up, and people can’t afford the basics at the supermarket.”

Economic Growth Strategy

Luxon defended the policy as part of a wider push to attract high-net-worth investors during a period of economic recession. “We’re a safe haven in a volatile world,” he told reporters in Auckland, adding that foreign investors could generate jobs and long-term business growth.

The government estimates that applications under the residency program could bring up to NZ$1.8 billion in investment. Officials have so far received more than 300 applications representing around 1,000 people, with nearly 40 percent coming from the United States.

To limit impact on the broader housing market, only homes worth NZ$5 million or more will be eligible for purchase. That threshold covers fewer than one percent of New Zealand’s housing stock — around 10,000 properties, most of them in Auckland and the tourist hub of Queenstown.

Housing Context

Average home prices remain far below the NZ$5 million cutoff, standing at NZ$767,250 nationally in July and NZ$975,000 in Auckland, according to the Real Estate Institute of New Zealand.

The original 2018 ban was introduced amid public concern that foreign buyers were pricing out locals, particularly in Auckland, where one in five homes sold at the time went to overseas buyers. Exceptions were made for Australians and Singaporeans under trade agreements.

Luxon’s National Party campaigned last year on repealing the ban, but coalition negotiations with partners forced a compromise — a partial rollback rather than full repeal.