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New Zealand is set to ease its ban on foreign buyers, allowing wealthy investors holding so-called golden visas to purchase luxury homes worth at least NZ$5 million ($3 million). The coalition government announced the change on Monday, framing it as a strategic move to attract high-net-worth individuals and revive the nation's sluggish economy. This policy shift will take effect by the end of the year, once reforms to the Overseas Investment Act are officially passed into law.
Prime Minister Christopher Luxon emphasized New Zealand’s global appeal as a great place to live and the need to grow the economy by welcoming significant investors who want to contribute to the community. He described the change as a balanced approach, appealing to both those wary of foreign ownership and those seeking to deepen wealthy investors’ ties to the country.
The golden visa, officially known as the Active Investor Plus visa, was relaunched five months ago to attract foreign capital by offering residency in exchange for substantial investment. Until now, visa holders were largely barred from buying property unless they were residents or citizens. The new exemption permits them to buy a single home valued at NZ$5 million or more. This threshold targets a very small segment of the housing market approximately 7,000 properties nationwide and is intended to minimize impact on housing affordability.
Data shows there have been over 300 applications for the golden visa so far this year, representing potential investments exceeding NZ$1.8 billion, with about 40% from U.S. applicants. While critics worry the move could exacerbate housing challenges, experts note its effect on prices will be limited, given the high price floor and the market dynamics influenced more by local economic factors than foreign speculation.
The easing of restrictions aligns with broader government efforts to increase foreign investment amid economic headwinds, including a recent recession period. The policy maintains protections for most New Zealanders by excluding purchases of farms, rural, and sensitive land, and continues the overall foreign buyer ban for properties below the high-value threshold.
Overall, New Zealand's new approach is aimed at reinforcing its position in the competitive global market for wealthy international investors, balancing economic growth objectives with the need to protect the local housing market.