Overseas-based investors who hold an investor residence visa will now be able to purchase a home in New Zealand, Prime Minister Christopher Luxon has confirmed, reported 1News.
According to a report by 1News, the visa allows residency for individuals who invest at least $5 million in New Zealand, meet good character requirements, and pass health checks. Under the new rule, visa holders will be eligible to buy or build one home valued at a minimum of $5 million, a price bracket representing fewer than 1% of homes nationwide.
Luxon said the broader foreign buyers ban, introduced in 2018 under the Labour-led Government with New Zealand First, will remain in place. That ban already included exceptions for Australians and Singaporeans, 1News reported.
“This change navigates a path between those who do not want foreign ownership opened up, and the desire to attract high-net-worth investors by deepening their connection to our country to help grow the economy,” Luxon said, quoted 1News
Since the Active Investor Plus visa was relaunched on April 1, more than 300 applications have been submitted. If approved, they could bring a minimum of $1.8 billion in investment to the New Zealand economy, the Prime Minister said.
Peters: Policy won’t affect the wider housing market
New Zealand First leader Winston Peters, who was instrumental in introducing the 2018 ban, stressed that the core restrictions remain.
1News quoted, “The foreign buyers ban on housing remains,” Peters said. “However, as we signalled months ago, we have agreed that holders of a current existing Active Investor Plus Residence Visa, who are investing millions of dollars into our economy, should be able to own a home.”
He noted the new conditions exclude rural, farm, and sensitive land. Visa holders will also be restricted to purchasing only one home, worth at least $5 million. “This will exclude over 99% of New Zealand homes on the market, protecting the vast majority from sale to foreigners, and will not affect the wider housing market for Kiwis,” Peters said.
ACT Party leader David Seymour welcomed the decision, saying foreign investment was essential.
“New Zealand needs foreign investment, but foreign investment does not need New Zealand,” Seymour said. “If wealthy investors want to buy a home that doesn’t affect first-home buyers at all, we should see that as a massive win-win and a massive step forward,” 1News quoted.
Opposition: Policy will worsen the housing crisis
Labour housing spokesperson Kieran McAnulty criticised the announcement, saying it would put further pressure on an already strained housing market.
“Today’s announcement shows how out of touch Christopher Luxon is,” McAnulty said. “Many Kiwis are already struggling to buy a home, and he has just made it worse. More pressure at the top end pulls up house prices for the average Kiwi” quoted 1News.
He accused the Government of prioritising property speculation over affordability. 1News quoted, “Homelessness is up, unemployment is up, and people cannot afford the basics at the supermarket, but Christopher Luxon made it his priority to drive up house prices again anyway,” McAnulty said.
Green Party housing spokesperson Tamatha Paul was also critical, describing the move as “rolling out the red carpet for rich investors.”
“Last week Christopher Luxon said he wanted to see house prices increase, and now he’s working to make that happen,” she said. “Real estate agents will have every incentive to boost prices to $5 million in order to sell to this new wealthy market, further shunting struggling renters and homebuyers out of contention,” 1News quoted.
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