On September 1, 2025, New Zealand’s government announced a significant—yet carefully tailored—shift in its approach to foreign property ownership, opening the door for a select group of wealthy overseas investors to purchase homes in the country. The move, described by Prime Minister Christopher Luxon as a way to “boost the economy” while maintaining strict controls, comes as the nation seeks to attract high-net-worth individuals without sparking fresh concerns about housing affordability for everyday New Zealanders.
According to 1News, the change specifically allows holders of the Active Investor Plus residency visa to buy or build one home in New Zealand, provided the property’s value is at least $5 million—a price tag that puts it well out of reach for most and represents less than 1% of the country’s housing supply. These investors must have already committed a minimum of $5 million into New Zealand, passed a good character test, and met health requirements. The government says this carefully drawn line aims to attract capital and expertise without opening the floodgates to speculative foreign buying.
Prime Minister Luxon emphasized the balance his administration is attempting to strike. “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,” he said. Since the visa’s re-launch on April 1, more than 300 applications have been received, representing a potential minimum investment of $1.8 billion into the New Zealand economy if all are approved and proceed.
The Active Investor Plus Visa isn’t just a ticket to a luxury home. As explained by 1News and other sources, the visa allows foreigners to live, work, and invest in New Zealand. It comes in two investment flavors: Growth and Balanced. The Growth category requires a minimum commitment of NZD $5 million over three years, focused on high-risk investments such as direct stakes in New Zealand companies. The Balanced category, meanwhile, demands a heftier NZD $10 million over five years, but spreads risk through diversified investments. Visa holders can apply for permanent residence after three years in the Growth category or five years in the Balanced category, provided they keep their funds invested for the required period. Individuals who received residence visas under the previous Investor 1 & 2 schemes are also eligible for the new property purchase exemption.
Luxon was clear that the broader ban on foreign buyers, first instituted in 2018 by the Labour-led government in partnership with New Zealand First, remains firmly in place. That ban, which already included exceptions for Australians and Singaporeans, was designed to protect the local housing market from overseas speculation. The new exception, officials stress, is tightly circumscribed. Winston Peters, leader of New Zealand First and a key architect of the original ban, underscored this point: “The foreign buyers ban on housing remains. However, as we signalled months ago, we have agreed that holders of a current existing Residence Class ‘Active Investor Plus Residence Visa’ holders, who are investing millions of dollars into our economy, should be able to own a home.”
Peters continued, “We have ensured that there are tight restrictions on eligibility and what these current residence visa holders can purchase. Existing restrictions excluding the sale of rural, farm, and sensitive land will still apply. These Investment Visa holders will be restricted to only one home, either purchasing an existing home or building a new home, with the value of that home being a minimum of $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.”
ACT party leader David Seymour, for his part, welcomed the move, arguing that New Zealand needs foreign investment to thrive. “We can't afford to turn our nose up to friends around the world who want to bring their money and their know-how to this country. If they want to buy a home, which is not going to affect first home buyers at all, I think we should see that as a massive win-win and a massive step forward for New Zealand and the Government,” Seymour told 1News.
But not everyone is convinced. Critics from opposition parties, including Labour and the Greens, have been quick to warn of potential side effects. Labour’s housing spokesperson Kieran McAnulty didn’t mince words, saying, “Today’s announcement shows how out of touch Christopher Luxon is. 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. New Zealanders should be at the top of the priority list for houses.”
McAnulty went further, pointing to broader economic pressures: “People cannot afford the basics at the supermarket but Christopher Luxon made it his priority to drive up house prices again anyway.” He also argued that the National government’s previous moves, such as removing the First Home Buyers grant and favoring property speculators, have already made home ownership harder for ordinary New Zealanders.
The Green Party’s housing spokesperson Tamatha Paul echoed those concerns, describing the move as “rolling out the red carpet for rich investors.” She argued that making it easier for offshore interests to buy housing would inevitably drive up prices. “Real estate agents will have every incentive to boost prices to $5m in order to sell to this new wealthy market, further shunting struggling renters and home-buyers out of contention,” Paul said.
Despite the political skirmishing, the government insists the new rules are narrowly targeted. The minimum $5 million price tag, officials say, ensures that the vast majority of homes—over 99%—remain unaffected and out of reach for foreign buyers. The restriction to a single home per visa holder, along with the continued exclusion of rural, farm, and sensitive land, is designed to prevent the kind of speculative buying that many New Zealanders worry could price them out of their own neighborhoods.
Adding another layer to the policy mix, New Zealand has also introduced a new Business Investor Visa, offering a pathway to residency for those who invest NZD $1 million in an existing business (with a three-year work-to-residence pathway) or NZD $2 million (for a fast-tracked 12-month residency, provided the business creates at least five jobs). Applicants can either purchase a business outright or acquire a significant stake, as long as they meet the minimum investment thresholds.
As the dust settles on this contentious policy shift, one thing is clear: New Zealand is determined to walk a tightrope between attracting much-needed foreign capital and safeguarding opportunities for its own citizens. Whether this approach will succeed—or simply stoke further debate—remains to be seen, but for now, the government’s message is one of cautious optimism, with a wary eye on the housing market’s future.