PHOTO: From 1 April 2025 to 31 March 2027, overseas buyers will be blocked from purchasing existing homes across Australia. FILE
An unprecedented two-year ban on foreign residential property purchases in Australia has created a massive window of opportunity for New Zealand — but experts warn we’re on the verge of missing it.
From 1 April 2025 to 31 March 2027, overseas buyers will be blocked from purchasing existing homes across Australia. While the move aims to cool their overheated housing market, it also opens the floodgates for foreign capital to shift — potentially across the Tasman.
According to Caleb Paterson, founder of Paterson Luxury Real Estate, New Zealand stands to gain — if it moves quickly.
“International investors aren’t just chasing returns — they’re looking for stable, beautiful, secure places to live and do business. That’s New Zealand to a tee,” he says.
“But without policy clarity, they’ll go to Dubai, Singapore — anywhere with a yes or a no. Not maybe.”https://www.propertynoise.co.nz/sponsored-unlock-the-power-of-the-new-zealand-real-estate-agents-database-over-17000-agents-agencies/
💸 Billions Waiting on the Sidelines
Paterson says he’s personally seen major deals fall over in recent months — not due to price, but due to regulatory uncertainty.
“We’ve had developers shelve $70 million projects. There are offshore syndicates sitting on billions ready to deploy. Expats wanting to come home — blocked. Not because they don’t have the money, but because they can’t get a clear answer.”
He’s calling for urgent clarity on rules for offshore buyers, suggesting a minimum investment threshold — a simple policy shift that could unleash massive demand without putting pressure on everyday home buyers.
“This isn’t about pity for someone selling a $10 million home. If they can’t sell, builders don’t build. Tradies don’t work. The money doesn’t move.”
🏘️ 40% of NZ Luxury Listings Were Withdrawn in 2024
It’s not just missed opportunities — the market is already freezing.
According to Paterson, four out of every ten high-end listings were pulled in 2024, due to a complete lack of certainty for potential overseas buyers.
“It’s paralysis. We’re not just losing property sales — we’re losing businesses, jobs, brands that were ready to launch here and bring long-term value.”
He cites the case of a global coffee company that pulled out of New Zealand because their founder couldn’t secure a home first.
🛬 NZ Could Be a Global Haven — But Time Is Ticking
As the world gets more unstable — with proposed wealth taxes in Canada, and political volatility in the U.S. — New Zealand’s clean, safe, and politically stable image is more attractive than ever.
But Paterson warns:
“Appeal isn’t enough. Other countries are rolling out the red carpet. Dubai has a clear process. We don’t even have the front door open.”
He says he speaks regularly with HNWIs (high-net-worth individuals) from the U.S., UK, China, and Canada — all of whom are “interested in New Zealand, but unsure if they’re welcome.”
🛠️ It’s Not Just Housing — It’s the Whole Economy
Paterson stresses this isn’t about flooding the country with foreign money — it’s about strategic, high-value investment that creates jobs and builds communities.
“These buyers bring business. They hire people. They build tech ventures. They invest in commercial property and construction. We’re not blocking a person — we’re blocking a potential employer.”
Even regions outside the main metros stand to benefit.
“In places like Northland, Central Otago, and the Bay of Plenty, even just a handful of international buyers could mean hundreds of jobs and real economic momentum.”
✅ What Needs to Happen
Paterson is calling for:
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A clear, published policy around foreign investment thresholds
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A minimum investment cap to protect affordable housing
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Fast-track processes for genuine long-term investors
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A public message that New Zealand is open for business
“If the Government acts now, we’ll see listings rise, stalled developments resume, and a massive injection into the economy — without touching everyday Kiwi home buyers.”
But, he warns, every week of indecision means more capital rerouted — and more missed chances.
✈️ Final Thought: The Door Is Open — For Now
As Australia closes its borders to property investors, New Zealand has a rare moment to position itself as the premium global alternative.
But moments pass.
“This could be our post-Covid recovery moment,” Paterson says. “But only if we stop dithering and give the world a clear signal: We’re open. We’re stable. We’re ready.”
🧠 Got thoughts?
We want to hear from developers, agents, investors, and first-home buyers. Is foreign capital a threat or a saviour? Email us and join the debate.