Govt Eases Rules for Investor Visa Holders, Allowing $5m+ Homes to Be Purchased

The Coalition Government has confirmed a targeted change to New Zealand’s foreign buyer restrictions, allowing overseas-based investors who hold an Active Investor Plus residency visa to purchase or build one residential property in the country—provided the property is valued at $5 million or more.

Prime Minister Christopher Luxon announced the move, emphasising that the broader ban on foreign purchases of residential housing will remain intact. However, he said the new exemption is designed to strengthen investor connections to New Zealand while continuing to attract high-value capital.

Balancing Foreign Investment and Housing Concerns

“The ban on foreigners buying residential housing will remain,” Luxon said. “But the Government wants to bring additional investment, skills, ideas and connections to New Zealand. The Active Investor Plus residency visa allows that.”

The visa, relaunched in April 2024, grants residency to high-net-worth individuals who invest a minimum of $5 million in New Zealand enterprises. Applicants must also pass a good character test and meet health requirements.

Luxon explained that while these visa holders contribute to the economy, many live overseas for much of the year. Under the Overseas Investment Act, this residency pattern meant they were not eligible to purchase property. The new change resolves this by permitting them to buy or build one home, but only at the high-value threshold of $5 million, representing less than 1% of all houses in New Zealand.

Strengthening Investor Links to New Zealand

The Government argues that the reform strikes a middle ground: it avoids opening up New Zealand’s housing market to general foreign ownership while ensuring significant investors feel more connected to the country.

“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,” Luxon said.

The policy aims to appeal to international investors who may otherwise view New Zealand’s strict housing rules as a deterrent to establishing deeper ties. By allowing them to own a residence, the Government hopes to encourage long-term commitments, including increased investment, innovation, and local engagement.

Economic Impact: Billions in Potential Investment

Since its relaunch on April 1, the Active Investor Plus visa has already attracted over 300 applications. If all are approved, this represents a potential minimum of $1.8 billion in new investment into the New Zealand economy.

This capital is expected to flow into sectors such as technology, infrastructure, renewable energy, and growth-focused businesses—helping stimulate economic development and job creation.

“Globally, New Zealand has a deserved reputation as a great place to live,” Luxon said. “By opening our door just a little to allow significant investors to own a home, we will help attract more of those who want to contribute to the community and country.”

Guardrails to Protect Local Housing

The Government has made it clear that this is not a relaxation of the general foreign buyer ban introduced in 2018. The $5 million minimum threshold ensures the exemption applies only to the luxury end of the market, avoiding competition with ordinary New Zealand families.

Furthermore, the rule allows just one residential property per investor, preventing bulk acquisitions that could distort property availability.

Looking Ahead

The change reflects a wider Government agenda of attracting capital while safeguarding New Zealand’s social and economic interests. By tightening eligibility and focusing on the ultra-high-value housing market, ministers believe the country can attract billion-dollar investors without fuelling domestic housing pressures.

With global competition for skilled investors intensifying, New Zealand’s approach seeks to balance openness with caution—welcoming those prepared to commit financially while maintaining a protective stance toward everyday housing affordability.