Demand for scarce ultra-high-end properties surges
New Zealand’s supply of ultra-luxury homes is falling well short of interest from wealthy migrants just as tougher investor visa rules kick in.
From next week, changes to the Active Investor Plus (AIP) visa will mean house-buying applicants can only purchase properties priced above $5 million – a tightly targeted move designed to lift ultra‑prime demand while keeping foreign buyers confined to the very top of the market.
But fresh figures from realestate.co.nz show the real squeeze is at far higher price points, with just 142 homes listed nationwide at more than $10 million. Properties above $20m barely register in the national totals, RNZ reported.
Realestate.co.nz chief executive Sarah Wood (pictured) said New Zealand’s ultra-prime market is still developing compared with established global hotspots.
“The AIP visa programme effectively introduces a positive demand shock into this segment of the market overnight, however, the supply has not had a chance to grow organically over time. The result is significant pressure on the supply of houses valued in the tens of millions,” Wood said.
High-net-worth migrants chase $20m-plus “trophy” homes
Immigration NZ data shows nearly 590 people from 33 countries have applied for residency under the AIP visa so far. Agents report a growing cohort of applicants focused exclusively on homes priced above $20 million, with demand estimated to be around five times existing supply at that level.
Search behaviour on realestate.co.nz highlights where that money is coming from. Over the past year, there have been about 36,000 offshore searches for homes priced above $5 million. North America and the UK account for roughly a third (34%) of that activity.
“The United States accounts for around a fifth (19%) of international $5 million-plus searches, followed by the United Kingdom at 9% and Canada at 4%. That profile reflects demand from established wealth markets rather than speculative traffic,” Wood said.
Industry insiders say the combination of limited stock, a new visa-driven demand surge, and strong offshore interest could reshape the very top of New Zealand’s housing ladder, particularly in traditional luxury hubs such as Auckland and Queenstown.
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