The New Zealand Government has announced a significant change to its overseas investment regime, allowing certain foreign investors to purchase high-value residential property under strict conditions. This development builds on recent reforms to immigration and investment policy and reinforces the role of the Overseas Investment Office (OIO) in managing residential land acquisitions.
Prime Minister Christopher Luxon confirmed that while the general ban on foreign buyers remains in place, overseas-based investors who hold a New Zealand investor residence visa—specifically under the Active Investor Plus category—will now be permitted to buy or build one residential property, provided it meets a minimum value threshold of NZD $5 million.
This change, which the Government is yet to confirm when it will take effect, is designed to attract high-net-worth individuals who can contribute significantly to New Zealand’s economy, while maintaining protections around housing affordability and land ownership.
When enacted this change will reflect a broader recalibration of New Zealand’s approach to foreign ownership rules, aligning with recent reforms to both the Investor Plus visa category and the Overseas Investment Office (OIO) framework.
Investor Plus Visa Reform
As outlined in our recent insight the Active Investor Plus categoryoffers two key pathways:
- Growth Investment Category: Requires a minimum investment of NZD $5 million into Invest New Zealand-approved managed funds or direct investments, with a 36-month investment period. Investors must spend at least 21 days in New Zealand over the three-year period.
- Balanced Investment Category: Requires a minimum investment of NZD $10 million, with broader investment options and a 60-month investment period. Investors must spend at least 105 days in New Zealand over five years.
- These time-in-country requirements are designed to ensure meaningful engagement with New Zealand’s economy and communities. In some cases, the Balanced category allows for time reductions if additional investment or qualifying criteria are met.
Under the proposed new framework:
- Eligible investors may be able to buy or build one home in New Zealand where previously they were not able to.
- The property must be valued at NZD $5 million or more, representing less than 1% of New Zealand’s housing stock.
- Individuals who received residence visas under the previous categories will also be eligible
OIO Consent Requirements
The OIO continues to play a central role in the approval process for foreign buyers. Consent is required for most residential land purchases by overseas persons, and applicants must demonstrate that their investment will benefit New Zealand—economically, socially, or environmentally.
For more on how the OIO assesses residential land purchases, see our article: How does the Overseas Investment Office (OIO) impact home buyers?
Key Considerations for Overseas Investors
The new rules will likely impact:
- Eligibility under the Overseas Investment Act 2005, particularly for residential land and sensitive land.
- OIO consent requirements for foreign buyers.
- Legal and financial due diligence for overseas persons investing in New Zealand property.
With this announcement, we recommend that clients:
- Review current and planned transactions to assess compliance with the new value threshold.
- Monitor further guidance from the Government and the OIO regarding implementation details, including how the residential property and $5 million threshold will be defined.
If you are looking to invest in New Zealand you are not eligible to buy land in New Zealand without OIO consent, this will open a new pathway for high-net-worth individuals. . Understanding the new rules are key and can help you make strategic decisions and avoid potential legal issues. Watch this space for more details of when the changes come into force.
If you have any questions about the content in this article or require legal advice about buying or building a home, contact our property law and immigration teams.
Disclaimer: The content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.
