PHOTO: New Zealand Prime Minister Christopher Luxon. FILE
New Zealand is rolling back part of its foreign property ban – giving ultra-wealthy overseas investors the green light to purchase luxury homes. But is this a lifeline for the economy, or a blow to everyday Kiwis already struggling to buy a house?
📰 What’s Happening?
New Zealand Prime Minister Christopher Luxon has confirmed a dramatic shift in housing policy: wealthy foreigners holding the government’s “golden visa” residency scheme will now be allowed to purchase one home valued at $5 million NZD ($3 million USD) or more.
This marks a partial reversal of the 2018 foreign buyers’ ban – a policy introduced to cool surging house prices.
Luxon argues the move is “about balance”: attracting overseas investment during a recession, while limiting the effect on everyday buyers by only opening up the very top end of the market.
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💳 Who Can Buy?
To qualify, investors must:
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Hold a golden visa (minimum $5m in NZ businesses over three years or $10m in low-risk investments over five years).
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Buy only one property, worth at least $5m.
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Skip the old requirement of living in NZ for 6 months per year.
👉 Officials say fewer than 1% of homes nationwide meet the $5m threshold – roughly 10,000 properties.
📍 Where are they?
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Auckland: 80% of eligible homes.
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Queenstown: 10%, popular with wealthy expats and investors.
📉 The Housing Market Right Now
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National average house price (July 2025): $767,250.
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Auckland average: $975,000.
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Peak: Prices have fallen since 2022 highs.
Luxon insists the policy won’t lift prices, but critics warn even small shifts at the luxury end of the market could ripple through the system.
⚖️ Political Fallout
Labour’s housing spokesperson Kieran McAnulty blasted the move:
“Many Kiwis are already struggling to buy a home, and he has just made it worse. Homelessness is up, unemployment is up, and people cannot afford the basics at the supermarket.”
Critics argue Luxon is more interested in courting wealthy Americans than fixing the housing affordability crisis.
📊 Government stats show 300+ golden visa applications (around 1,000 people), with 40% from the US.
🌍 Why It Matters Globally
New Zealand has long been seen as a “safe haven” in an unstable world – a retreat for billionaires and investors.
Past headlines about foreigners buying doomsday bunkers in Queenstown added fuel to the debate on whether international money was distorting the market.
Luxon says instead of bunkers, this move is about jobs and growth:
“We’re a safe haven in a very volatile and uncertain world. Investors bring opportunity, growth, and jobs.”
🏚️ End of the Ban? Or Just the Beginning?
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The 2018 ban stopped most foreigners from buying property, except Australians and Singaporeans (thanks to trade deals).
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Luxon campaigned in 2023 on reversing it entirely.
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Coalition politics forced a compromise: only partial rollback for now.
But critics wonder if this is just the first step toward fully reopening NZ’s housing market to wealthy overseas buyers.
🧐 The Big Question
Will allowing foreign millionaires to snap up luxury Kiwi homes inject life into the economy – or push locals further out of the market?
