Change could allow wealthy foreigners to buy NZ homes
NZ First leader Winston Peters (pictured) says he expects an announcement “soon” clearing the way for wealthy foreign investors to buy high-value houses in New Zealand.
But he insists the foreign buyers ban – which prevents most foreigners from purchasing existing houses – will remain in place, unchanged.
What is the foreign buyers ban?
The foreign buyers ban was introduced through the Overseas Investment Amendment Act 2018. It prevents most non-residents from buying existing homes in New Zealand, with the aim of easing housing affordability pressures.
Exemptions apply for Australian and Singaporean citizens. Other foreigners may buy new builds or development land if it adds to housing supply, or leasehold property not for their own use, all subject to OIO approval.
“We’re talking about investment. We’re changing those rules and what goes with them. You have to be patient – and we’ll tell you what the details are,” Peters told reporters on Wednesday.
“But the Foreign Buyers Act is not changing.”
The government is reportedly considering a new investment threshold significantly higher than National’s original $2 million proposal, which NZ First blocked during coalition negotiations last year, RNZ reported.
Foreign buyer ban stays – but luxury exceptions likely
Peters, who co-authored the original foreign buyer ban in 2018, emphasised that the framework would remain intact. However, he signalled openness to exceptions for buyers bringing substantial capital.
“The foreign buyers ban will remain,” he said. “We’re talking about investors. They’re bringing billions to this economy. They’re not buyers.”
While the exact threshold is under discussion, Peters made it clear that any new entry point would not be “$2 million” and said the changes would focus on those “investing millions of dollars.”
“For the right person with the right investment”
In previous comments, Peters hinted that any change would be aimed at top-tier foreign investors, saying in October: “It would need to be far more than a lousy $20 million.”
A NZ First spokesperson confirmed ongoing consultations were focused on economic benefits and job creation, without disrupting the housing market.
Luxon, Seymour back investor-driven approach
Prime Minister Christopher Luxon confirmed the timeframe outlined by Peters but declined to give more detail on internal coalition negotiations.
“When we’re ready to talk about it, we will,” Luxon said. “You’ve heard what Winston said… and that’s a fair reflection of where things are at.”
He had previously admitted National’s $2m foreign buyer threshold was “too low” and floated $5m or $6m as more reasonable entry points.
ACT leader and associate finance minister David Seymour – who oversees the Overseas Investment Act – said he would support any move that encouraged investment.
“I’d be there with bells on,” Seymour said. “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-win for New Zealand.”
Golden visa changes already drawing interest
Immigration New Zealand has already received nearly 200 applications since the changes took effect, suggesting strong demand remains in the global investor class.
What it means for advisers
If the changes proceed, mortgage advisers operating in the luxury or non-bank lending space could see increased demand from overseas buyers or developers tied to high-value capital inflows.
However, advisers should note that any changes will target wealthy individuals only and are unlikely to affect the broader residential market.
Peters reiterated that: “We’re not opening the market to buyers – we’re opening it to investors.”
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