Summarised by Centrist
The government has announced that foreign investors with New Zealand’s top-tier investor visa will soon be allowed to purchase one luxury home, reversing part of a longstanding ban on overseas residential property buyers.
The Active Investor Plus visa grants residency to foreigners who invest at least $5 million directly into the New Zealand economy.
As of August 31, Immigration NZ had received 308 applications covering 1,000 people, with a potential total investment of nearly $2 billion. About 40 percent of applicants are from the United States.
Of New Zealand’s roughly 1.9 million homes, only around 7,000 are worth more than $5 million, with most located in Auckland and Queenstown. An estimated 350 such properties are listed for sale each year.
Winston Peters, NZ First leader stated: “This will exclude over 99% of New Zealand homes on the market, protecting the vast majority from sale to foreigners.” He added that restrictions remain on farmland, sensitive land, and speculative resale.
Immigration Minister Erica Stanford said the change is expected to affect “hundreds, not tens of thousands” of buyers.
Labour’s housing spokesman Kieran McAnulty claimed: “More pressure at the top end pulls up house prices for the average Kiwi.”
Prime Minister Chris Luxon rejected this, saying: “We’re not driving into speculative property investment. What we want to be doing is driving into productive investment.”
Read more over at The NZ Herald and AFR
