In a move aimed at attracting high net worth investors, New Zealand has lifted its ban on foreign buyers for homes worth over $5 million. Prime Minister Christopher Luxon announced that overseas-based investors holding an “Active Investor Plus” residence visa will be allowed to purchase these high-end properties.

Details of the Policy

– Eligible properties will be limited to homes worth $5 million or more, which accounts for less than 1% of New Zealand’s housing supply.
– Foreign buyers will be restricted to purchasing one home, and existing restrictions on rural, farm, and sensitive land sales will still apply.
– Most eligible properties are located in Auckland and Queenstown-Lakes, with popular areas including Remuera, Herne Bay, and St Mary’s Bay in Auckland.

Reactions to the Policy

The government’s decision has been met with mixed reactions. While real estate agents welcome the move, citing potential increased interest from foreign buyers, the opposition Labour party has expressed concerns that it will drive up house prices and make life harder for New Zealanders wanting to own their own home.

Potential Impact

The policy is expected to attract high net worth investors and boost the economy. If all 300+ Active Investor Plus visa applications are approved, it could result in a potential total minimum investment of $1.8 billion in the New Zealand economy.