New Zealand May Allow Foreigners to Purchase $5 Million-Plus Homes in Upcoming Budget

Speculation is mounting that the upcoming Budget announcement from the new National-led government might include a provision allowing foreign investors to purchase residential properties valued over $5 million in New Zealand. This potential move deviates from National’s election promise to lower the threshold to $2 million for foreign property buyers, a policy aimed at reversing the previous Labour government’s ban which exempted only Australians and Singaporeans.
The coalition partner, New Zealand First, had previously opposed this policy change. Despite the circulating rumors, industry insiders remain skeptical but hopeful. Mark Harris of NZ Sotheby’s International Realty expressed his support for any policy that would ease restrictions on foreign buyers, regardless of whether the threshold is set at $2 million, $4 million, or $5 million.
Cam Winter, from Oliver Road, suggests that the rumored $5 million threshold might be specifically tied to a certain class of residency application, where potential residents are required to make significant investments in New Zealand, possibly including the purchase of high-value residential properties. This approach could represent a strategic method to attract new investments into the country without necessarily leading to a significant influx of foreign capital into the real estate market.