Foreign buyer restrictions clash with surging investor interest
Wealthy Americans are flocking to New Zealand’s revamped golden visa program — but their hopes of putting down roots are being hampered by the country’s longstanding ban on foreign property ownership.
Interest among Americans in relocating abroad — whether temporarily or permanently — has surged since the US election. For many, New Zealand stands out, thanks to its remote geography, political stability, and low population density.
To attract long-term residents and investors, New Zealand has eased golden visa rules from April 2025, removing language tests and lowering investment barriers—sparking US interest, though the foreign buyer ban remains a major hurdle.
“A sensible way forward would be that anyone who successfully obtains a residence visa under the government golden visa scheme is eligible to buy a family home here,” Marcus Beveridge, managing director at Auckland-based Queen City Law, told Bloomberg.
Telling investors they can’t buy a house “really sticks in the craw,” he said.
Visa overhaul triggers wave of applications
In just six weeks since the policy changes, New Zealand has received 104 investor visa applications, representing 346 individuals and at least $620 million (US$365 million) in committed investment. That figure nearly equals the volume of applications processed over the past two and a half years under the previous visa system.
“We are seeing a lot more inquiries and web traffic, particularly from the US,” said Mark Harris, managing director of New Zealand Sotheby’s International Realty.
However, Harris noted a key issue persists.
“Unfortunately, a lot of clients in the high-net-worth category just aren’t able to spend six months at one time,” he said. “It’s still a roadblock to them buying a home to enjoy.”
Real estate demand builds, but policy blocks remain
Luxury real estate broker Jim Rohrstaff, a partner at Legacy Partners, confirmed growing demand among American buyers — if the rules allow, Bloomberg reported.
“There is a tremendous amount of pent up demand,” Rohrstaff said. “Not only because of the things that are going on politically in the world, which are quite divisive, but I think Americans have always been fascinated by New Zealand. It’s a beautiful place. It’s a long way from everything.”
He added that many clients are looking for long-term stays beyond high-end accommodation.
“They’re staying in some of the beautiful luxury lodges around the country,” Rohrstaff said. “But there is an expiration date to that visit.”
Government weighs changes to foreign ownership ban
New Zealand’s current foreign buyer restrictions date back to 2018, when the Ardern government barred non-residents — with the exception of Australians and Singaporeans — from purchasing property, following a period of runaway housing inflation and the Peter Thiel passport-for-property controversy, Bloomberg reported.
Immigration Minister Erica Stanford has confirmed the issue is being discussed at a high level, saying last month that the matter was being considered “at a leader-to-leader level” within the coalition.
While no official announcement has been made, there is growing speculation that the government may include a policy shift in its upcoming budget, due Thursday.
Still, Prime Minister Christopher Luxon struck a cautious tone this week.
“Lifting the ban is not the be-all and end-all of attracting investment,” Luxon said.
Political will may finally shift after budget
The ruling National Party campaigned on relaxing the foreign buyer ban ahead of the 2023 election, proposing to allow non-residents to buy homes worth $2 million or more. However, the plan was shelved during coalition negotiations after opposition from New Zealand First.
Since then, NZ First leader Winston Peters has signalled openness to allowing foreign home purchases — under conditions that link them to broader investments in the country.
Beveridge believes the momentum for change is growing.
“I believe a lifting of the ban is inevitable, even if it doesn’t happen in this week’s budget,” he said.
