Investor visa changes fuel next wave of high-end demand
New Zealand Sotheby’s International Realty (NZSIR) has reported a sharp rise in ultra-high-end home sales in 2025, despite wider market volatility.
The agency recorded a 28% year-on-year increase in sales of properties priced at $5 million and above between January and November, with deals ranging up to $30 million. NZSIR handled five of New Zealand’s top residential sales this year, all in premium hotspots Auckland, Tasman, and Queenstown.
NZSIR managing director Mark Harris (pictured) said the prestige segment remains more resilient than the broader market.
“This year brought challenges and shifting dynamics, but activity in our flagship luxury lifestyle markets of Auckland (particularly Takapuna, Ponsonby, and Eastern Bays) has never faltered,” Harris said. “The high end, for us, has been the cornerstone of our business this year.
“In other sectors of the market, we’ve made stable gains throughout 2025. We’ve experienced sales volume growth in most regions but our outstanding performers are areas of Auckland, as well as Northland, Waikato, Hawke’s Bay, Nelson, Christchurch, and Queenstown.”
The luxury momentum is building against a backdrop of improving affordability and renewed buyer activity across the wider market, with Cotality NZ reporting that national values remain about 17% below peak, first-home buyers hold a record share of purchases, and investors are gradually returning as lower mortgage rates ease serviceability pressures.
Foreign buyer law change to bolster luxury demand
Interest at the high end is likely to accelerate further in 2026, with Parliament approving changes to the Overseas Investment Act that allow Active Investor Plus visa holders to buy or build homes worth $5 million or more – a tightly targeted move aimed at attracting high‑net‑worth investors while keeping foreign demand confined to the very top of the market.
“It is a pragmatic and well-calibrated change to the foreign buyer rules,” Harris said. “It’s a small change in volume terms, but a significant signal for confidence by reconnecting NZ with qualified global buyers who are already actively looking.”
Wellington recovery and Christchurch ‘hotspot’ potential
While 2025 saw a flat market performance for Wellington, Harris says the capital is making a comeback.
“Wellington is still recovering from the downturn but we’re seeing great pockets of activity in the Hutt Valley and Kapiti. The region as a whole is making a gradual recovery and we expect 2026 to be very busy here,” he said.
Christchurch is also tipped to be a premium property hotspot in 2026 – market strength continues to grow, and the prevalence of downsizers is boosting sales activity. The median house price increased 3% year-on-year in November to $720,000.
“Downsizers are very active in the market right now – as both vendors and buyers – in places like Christchurch and Auckland,” Harris said. “These urban centres with property types that are suited to later life stages, such as modern townhouses, are predicted to do very well next year.”
‘Gradual, not sharp’ upswing expected in 2026
Harris is expecting the 2026 market to begin nearing post-COVID activity levels – with a caveat that price increases will be slow and steady throughout the year.
“Nationally we’ll continue to see a gradual, not sharp, rise in sales activity and prices,” he said. “Some regional areas like Queenstown-Lakes and the Waikato will outperform the national average off the back of their strong lifestyle markets, and the relaxation of the foreign buyer rules will be great for the luxury end but will leave the majority of the market unaffected.”
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