Australia may have just rolled out the red carpet for New Zealand by shutting its doors to foreign real estate buyers. With the federal government in Australia introducing a ban on foreign investors buying existing homes until March 2027, New Zealand has a golden opportunity to rethink its own stance on foreign investment.

Since 2018, New Zealand has had its own ban on foreign buyers, but the winds of change are blowing through Wellington. If we want to show the world that we’re open for business, it’s time to reconsider this ban, especially now that Australia is off the table. Furthermore, the Significant Investment visa (AUS $5M) door has also been slammed shut, whereas New Zealand’s Golden Visa program is being widely promoted.

The foreign buyer ban sends a contradictory message to overseas investors. High-value investors are ready to commit capital, but they still can’t buy a home. It’s like inviting someone to dinner and then telling them they can’t sit at the table.

Recently I told The Post if New Zealand wanted to show it was “open for business” to foreign investors, it was time to rethink the ban, especially if Australia was now closed. A sensible way forward would be to allow anyone who successfully obtains a residence visa under the Government’s golden visa scheme to buy a family home, without the usual Overseas Investment Office (OIO) restrictions. Prime Minister Luxon was partially right when he said lifting the ban wasn’t the be-all and end-all of attracting investment, but I’d argue it’s a pretty essential part of making relocation viable for investors.

I’m not suggesting we reopen the door to speculative buying in the mainstream market. Instead, the National Party’s pre-election proposal to allow foreign buyers to purchase homes over $2 million would protect local buyers while welcoming globally mobile capital. Although this proposal was dropped during government negotiations, New Zealand First leader Winston Peters has recently hinted that allowing foreigners to buy houses over $5 million might be acceptable.

It didn’t happen in the Budget, but we could see this become law over the next few months. Given the flat housing market, who’s really going to worry about a few more people buying luxury houses? Some commentators have noted that deals at that level comprise less than 2% of total transactions per annum in Aotearoa.

Luxury real estate agent Caleb Paterson points out to The Post that Australia’s new regulations create a vacuum for foreign buyers that New Zealand is perfectly placed to fill. Ultra-high-net-worth clients are keen to buy high-end homes in New Zealand, but we’re at risk of missing out on billions in foreign investment as uncertainty lingers around changes to residential property rules for overseas buyers.

International investors are already shifting their focus to countries with clearer pathways he says, like the UAE, due to a lack of commitment from the New Zealand Government. We’ve had deals collapse because investors couldn’t buy a home to settle here first. Meanwhile, in places like Dubai, capital is being welcomed and economies are booming because of it.

With Australia banning foreign real estate purchases, New Zealand has a prime opportunity to attract global investors. Our current foreign buyer ban contradicts the welcoming message of the Golden Visa scheme. Allowing high-net-worth individuals to buy homes here would align our policies with global opportunities and boost economic growth. It's time to rethink the ban and make New Zealand truly open for business.

This is not actually the end of this story as those with residence visas who make New Zealand their home can actually buy family homes in New Zealand without restriction, provided they are ordinarily domiciled here. There is also an ability to apply to the Overseas Investment Office to get consent to buying a family home even though insufficient time has been spent onshore (providing you promise to subsequently make New Zealand home). If this is of interest, please refer to https://www.queencitylaw.co.nz/news-views/golden-visa-surge-foreign-buyer-ban-nz

Marcus Beveridge
Managing Director – Queen City Law
EMAIL MARCUS

Disclaimer: This blog is general commentary only and is not legal advice. Always seek tailored legal advice before making investment or immigration decisions.

 The Post, June 2025 – “Australia’s foreign buyer ban: An opportunity for NZ”

Retrieved from https://www.thepost.co.nz/business/360714791/australias-foreign-buyer-ban-opportunity-nz