New Zealand has long been admired worldwide for its natural beauty, quality of life, and stable political environment. But in recent years, foreign investors have faced tough restrictions when it comes to buying property in the island nation. That is now about to change.
The coalition government, led by Prime Minister Christopher Luxon, has announced a major policy shift that will allow wealthy investors with golden visas to purchase luxury homes worth at least NZ$5 million (approx. US$3 million). The move is aimed at reviving New Zealand’s slowing economy while still keeping a tight lid on broader property speculation.
This landmark decision is significant for international investors, high-net-worth individuals, and even local markets. In this detailed blog, we’ll break down what this policy shift means, its impact on New Zealand’s real estate and economy, and why global investors should be paying attention.
A Quick Look Back: Why New Zealand Banned Foreign Buyers
In 2018, the New Zealand government, under then-Prime Minister Jacinda Ardern, imposed strict restrictions on overseas property purchases. The ban was largely driven by fears that offshore buyers were contributing to soaring house prices and making it harder for first-time Kiwi buyers to get on the property ladder.
Before the ban, foreign buyers were estimated to account for only 2%–3.5% of home sales, but the political and public pressure to curb speculation was high. The foreign ownership clampdown also came in the shadow of scandals such as the Peter Thiel passport case, which raised concerns about wealthy outsiders using loopholes to gain residency and assets in the country.
For the past seven years, only New Zealand citizens, permanent residents, and nationals from Australia and Singapore were permitted to freely purchase homes. For others, the door to residential property was firmly shut—until now.
The New Rules: Golden Visa Holders Can Buy Luxury Homes
From the end of 2025, once reforms to the Overseas Investment Act pass into law, golden visa holders will be eligible to buy homes in New Zealand valued at NZ$5 million or more.
This is not a blanket removal of the ban but a carefully carved-out exception. The government is making it clear that the policy is not about opening the floodgates but about selectively attracting high-value investors who bring in capital, business, and opportunities.
Currently, there are about 7,000 homes in New Zealand worth NZ$5 million or more, representing just 0.4% of the national housing stock. Around 4,500 of these properties are located in Auckland, New Zealand’s largest and most economically important city. Another 1,250 are in Queenstown, the South Island’s luxury ski resort hub, which has long been a magnet for wealthy foreigners.
However, only 350 of these trophy homes typically go up for sale each year, meaning the available pool for foreign buyers will remain extremely limited.
What is New Zealand’s Golden Visa?
The Active Investor Plus Visa, often referred to as New Zealand’s “golden visa,” was relaunched in early 2025 to attract high-net-worth individuals. The program requires a significant investment in the country in exchange for residency rights.
So far, the visa program has attracted 308 applications covering around 1,000 people, with a potential investment value of NZ$1.9 billion. Interestingly, about 40% of applicants are from the United States, underlining the strong demand from wealthy Americans seeking lifestyle and investment opportunities abroad.
By tying the golden visa to property eligibility, the government is making New Zealand more appealing to global elites who often see luxury homes as both a lifestyle choice and a secure long-term asset.
Why the Change Now?
Prime Minister Christopher Luxon has been clear about his government’s motivation: New Zealand needs to compete harder for global investment.
“New Zealand has a reputation as one of the best places to live, but we’re competing with 195 other countries for the attention of major investors,” Luxon told reporters in Auckland. “The Active Investor Plus visa, coupled with the ability to purchase a NZ$5 million home, helps us stand out and attract people who will genuinely contribute to our economy.”
New Zealand’s economy has been under strain, with sluggish growth and a soft housing market since property prices retreated from their pandemic-era highs. By loosening restrictions just a little, the government hopes to bring in fresh foreign capital without overheating the broader market.
Will This Impact Local Housing Affordability?
One of the biggest questions surrounding this policy is whether allowing golden visa holders to buy luxury homes will worsen housing affordability for ordinary New Zealanders.
According to property consultancy Cotality, the answer is likely no.
“Luxury properties worth NZ$5 million and above represent a tiny fraction of the market,” said chief property economist Kelvin Davidson. “The impact on regular buyers is negligible. The bigger issues for the wider market right now are weak labor conditions and broader economic challenges.”
In short, this policy targets the ultra-rich segment that has little overlap with average homebuyers. For first-time Kiwi buyers struggling to purchase homes in the NZ$600,000 to NZ$1 million range, this change won’t make a noticeable difference.
Global Competition for Wealthy Migrants
New Zealand is not the only country offering incentives to high-net-worth investors. Nations such as Portugal, Greece, Spain, Malta, and the UK have long run golden visa schemes, often tied to real estate purchases.
By reintroducing property investment opportunities for foreigners—albeit in a highly restricted form—New Zealand is signaling that it wants a piece of this global pie.
“Those who may have considered New Zealand in the past but walked away because they couldn’t buy property are now back in the game,” said Stuart Nash, a former government minister who now advises wealthy clients on relocation.
The Numbers: Market Size and Demand
- 7,000 homes in New Zealand are worth NZ$5 million+ (0.4% of housing stock).
- 4,500 homes are located in Auckland.
- 1,250 homes are in Queenstown.
- 350 properties in this luxury category typically hit the market each year.
Even if just a fraction of the 308 golden visa applicants decide to purchase homes, the demand could absorb much of the available stock annually. This could put upward pressure on the ultra-luxury segment, but not the broader housing market.
Potential Benefits for New Zealand
The government hopes this policy will bring several long-term advantages:
- Increased foreign investment – Luxury home purchases bring in capital inflows, property taxes, and service spending.
- Boost to local industries – High-net-worth migrants often spend on construction, renovations, hospitality, and private education.
- Global branding – Attracting elite investors enhances New Zealand’s reputation as a safe, desirable destination.
- Stronger economic ties – Wealthy investors often create business links, partnerships, and philanthropic ventures in their new host country.
Risks and Concerns
While the change is relatively narrow, critics argue it still carries risks:
- Perception of inequality – Allowing only the wealthy to bypass restrictions could deepen public concerns about fairness.
- Limited housing supply – The ultra-luxury segment is small, and sudden foreign demand might push local millionaires out of that niche.
- Policy precedent – Opening a small door today could lead to broader rollbacks of the foreign buyer ban in the future.
Looking Ahead: What This Means for Investors
For high-net-worth individuals looking for safe havens and lifestyle destinations, New Zealand is once again back on the radar. With only a few hundred trophy properties entering the market each year, competition among golden visa holders could be intense.
The policy is also likely to spark interest from investors in the US, China, Singapore, and the Middle East, who are traditionally strong players in global luxury real estate.
As reforms are finalized later this year, luxury real estate agents in Auckland and Queenstown are expected to see a surge of inquiries from international buyers preparing to take advantage of the change.
Final Thoughts
New Zealand’s decision to open its luxury home market to golden visa holders is a calculated move to attract foreign capital while keeping its broader housing market shielded from speculation. By focusing only on properties worth NZ$5 million or more, the government is targeting the ultra-rich segment without impacting everyday affordability.
For wealthy investors, the appeal of New Zealand lies not just in real estate but in the lifestyle, stability, and global prestige that come with owning a home in one of the world’s most desirable countries.
As Prime Minister Luxon put it, “The competition is fierce, and the solution is competing harder.” With this move, New Zealand has signaled it is ready to do exactly that.
