Wellington: New Zealand has announced a major shift in its housing policy, allowing certain wealthy foreign investors to purchase property in the country under strict conditions. Prime Minister Christopher Luxon confirmed that holders of investor residence visas will now be permitted to buy or build homes, provided each property is valued at no less than NZ$5 million (approximately US$2.94 million).
The decision marks a carefully measured reversal of earlier restrictions that barred most foreign nationals from buying residential property in New Zealand. Luxon emphasized that the new rules strike a balance between the nation’s long-standing concern over housing affordability and the government’s ambition to attract high-value investment. “This policy ensures only those who contribute significantly to New Zealand’s economy can participate in the property market,” he said.
Earlier this year, the government had already overhauled its investor visa scheme to make it more accessible. The minimum investment threshold for the high-risk investor category was reduced from NZ$15 million to NZ$5 million, while English language requirements were scrapped. Until now, however, visa holders were prohibited from owning property unless they resided in the country for at least six months each year. The updated policy eliminates that restriction, enabling investors to anchor their financial commitments with tangible property assets.
The move has generated strong interest abroad. Reports show that within just six weeks of the revamped “golden visa” launch, more than 100 applications were submitted, primarily from U.S. citizens. These applications are expected to channel around NZ$620 million into New Zealand’s economy, signaling the potential scale of foreign participation under the revised rules.
Critics of the policy argue that easing restrictions for wealthy investors could fuel concerns about inequality and foreign influence over New Zealand’s housing market. However, supporters point out that the NZ$5 million floor price ensures these purchases remain in the luxury housing bracket, preventing undue pressure on middle-class or first-home buyers.
For the Luxon government, the strategy is part of a broader push to stimulate investment and growth by attracting global elites who are willing to commit capital and deepen ties with New Zealand. As the new rules come into effect, the country may see a surge in high-end property development, shaping a niche but lucrative segment of its real estate market.