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New Zealand Reverses Foreign Buyer Ban for Luxury Properties

New legislation allows Active Investor Plus visa holders to purchase homes worth NZ$5 million or more, effective early 2026.
Moustafa Daly IMI

Moustafa Daly

IMI
• Cairo

New Zealand has overturned restrictions on foreign property ownership after a seven-year ban.

According to local media, the parliament passed amendments to the Overseas Investment Act that allow overseas holders of Active Investor Plus (AIP) residency visas to purchase homes valued at NZ$5 million (~$3 million) or more.

The government announced the changes in a statement released over the weekend. Immigration Minister Erica Stanford said the Active Investor Plus residency visa is critical to economic growth.

Officials say the legislation is set to receive Royal assent within days to a week following passage, and is on track to take effect in the first half of 2026.

The House Office accelerated the legislative agenda after initially projecting passage in the first half of 2026.

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The NZ$5 million threshold applies to the combined value of house and land, though the government has yet to clarify further how it will assess property valuations for purchases or new construction.

Industry Mixed on Long-Term Impact

James Hall, CEO of ANZ Migrate, previously described the ban as a structural inconsistency in which New Zealand invited high-value investors but prevented them from purchasing property unless they were physically residing in the country.

He said the NZ$5 million threshold targets luxury properties well above the reach of most New Zealand homebuyers.

Mischa Mannix-Opie, Director of Client Experience at Greener Pastures New Zealand, said the reform is a meaningful signal that puts the country back on the radar for ultra-wealthy families seeking both a home and residency.

She added that most serious AIP investors choose New Zealand for lifestyle, safety, and long-term optionality, implying that real estate was never the main attraction.

The ability to buy a NZ$5 million-plus home complements the AIP visa by creating a much more complete proposition of long-term residency plus a place to live, Mannix-Opie said. She also thinks the decision is unlikely to affect housing affordability.

Successful Active Investor Plus applicants must invest a minimum of NZ$5 million to help grow the economy, pass a good character test, and meet acceptable health standards before purchasing or building a home.

Seven-Year Ban Ends Amid Economic Pressures

Immigration New Zealand has received 491 applications under the new AIP settings as of 15 December 2025 (covering 1,571 people), with 353 approved in principle and 129 resident visas granted, totaling about NZ$771 million committed investment. Americans are the largest applicant group, followed by Chinese.

American nationals account for 40% of applicants, with Chinese citizens the second-largest group.

Former Prime Minister Jacinda Ardern implemented the foreign buyer ban in 2018 amid public concern over housing affordability, though foreign buyers accounted for only 2 to 3.5% of property sales before restrictions took effect.

The reversal comes after New Zealand’s economy contracted in the second half of 2024 and remained weak through early 2025. The government has introduced multiple measures to attract foreign investment, including streamlined visa processes and reduced regulatory barriers, as it attempts to curb record population outflows to Australia.

Prime Minister Christopher Luxon described the relaxation of the ban as an attempt to navigate between opposition to foreign ownership and the desire to attract high-net-worth investors by deepening their connection to New Zealand.

“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,” he said.

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