Local buyers gain breathing space before foreign demand returns
Foreign buyers hoping to purchase New Zealand prestige property will now have to wait until next year, with the government confirming its changes to the foreign buyer ban will not pass until the first half of 2026.
The delay affects buyers using the Active Investor Plus “golden visa”, who were expecting fast-tracked eligibility following the prime minister’s announcement in September, OneRoof reported.
“The government has therefore decided that people with an Active Investor Plus residency visa will be allowed to buy or build one home," Prime Minister Christopher Luxon (pictured left) said at the time.
"The minimum value of the house that can be bought or built will be set at $5 million – which equates to less than 1% of New Zealand houses.”
Since 2018, only citizens, tax residents and nationals from Australia and Singapore have been able to freely buy residential property in New Zealand.
Timeline slips despite earlier assurances
The prime minister previously told Newstalk ZB’s Mike Hosking that a political deal on foreign buyer rules had been reached, with legislation expected this year.
However, Finance Minister Nicola Willis (pictured right) told OneRoof this week that the amended bill is still progressing through Parliament and is now slated for passage in the first half of 2026.
The bill remains at second reading, and its timing depends on the Government’s legislative programme.
Agents contacted by OneRoof say they have been told to expect a more specific window of March or April 2026.
Significant investor interest despite uncertainty
Willis said interest in the golden visa had been strong to date, highlighting its potential economic benefits.
“This is wonderful news for New Zealand jobs and incomes – it’s another tool for the Government has harnessed to bring in investment, skills and experience needed to fire up the economy,” she said.
Immigration New Zealand has received 416 applications since changes were introduced in April, representing a potential minimum investment of $2.47 billion.
Industry voices divided on the delay
Former Labour minister Stuart Nash, who now advises high-net-worth clients through Nash Kelly Global, said the delay was disappointing given initial political messaging.
“The message received from the prime minister when this was launched is quite different from the message now being given by the minister of finance and that’s a bit disappointing,” Nash said.
He added that sellers can still transact with golden visa buyers, provided sale agreements include a condition requiring legislative approval once the bill passes. But he warned of ongoing uncertainty:
“There just continues to be a level of uncertainty in the golden visa space with regards to the ability to purchase houses… There’s a lack of certainty for those who are buying and those who are selling.”
New Zealand Sotheby’s International Realty managing director Mark Harris said buyers overseas are already preparing.
“They are getting that done so when the rule is bought in they are ready to go,” Harris said.
Walker & Co director Hamish Walker said the delay was unlikely to put off investors, but could trigger a surge in transactions once the law takes effect.
Ray White agent Ross Hawkins noted that the pause gives local buyers a temporary opportunity to secure high-end homes before overseas purchasers return.
Prestige market remains tiny but highly concentrated
OneRoof and Valocity analysis shows New Zealand’s $5 million-plus market is small but heavily concentrated in two regions:
- Auckland: 4,479 homes worth $5 million-plus
- Queenstown-Lakes: 1,213 homes
That leaves just under 10,000 residential and lifestyle properties nationwide in the ultra-premium tier, with roughly 7,000 considered ready-to-live-in homes.
Sales volumes highlight the narrowness of the sector:
- Just 0.2% of all homes sold last year were in the $5 million-plus category
- Even at the peak of the market, the share only reached 0.4%
Among suburbs with more than 50 prestige homes, only three fall outside Auckland or Queenstown-Lakes: Mount Maunganui (204), Whangamata (89), and Merivale (54).
“All the suburbs are where you’d expect them to be and highlight just how popular the coast is in New Zealand. Most of the suburbs on the list are within touching distance of water,” Valocity senior research analyst Wayne Shum told OneRoof.
Remuera leads the country with 1,056 homes valued above $5 million, far ahead of neighbouring Parnell – a pattern fuelled by luxury housing stock and demand from families prioritising top-tier school zones such as Auckland Grammar and Epsom Girls Grammar.
What mortgage advisers should watch
For advisers, the delay means:
- No immediate return of foreign-buyer activity, keeping the prestige market locally driven
- Potential wave of pent-up demand from wealthy offshore buyers in 2026
- More enquiries from golden visa applicants preparing ahead of legislative change
- Ongoing uncertainty requiring conditional sale clauses for high-end contracts
The $5 million-plus tier remains niche but influential, and advisers working in Auckland, Queenstown-Lakes, and select coastal suburbs should prepare for renewed momentum once the legislation finally clears Parliament.
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