Coalition Government Confirms $5 Million Minimum Threshold
Wealthy foreigners holding New Zealand’s Active Investor Plus visa will once again be able to purchase or build a luxury home in New Zealand, following the coalition government’s confirmation of a new exemption to the foreign buyers’ ban.
The change, announced by Prime Minister Christopher Luxon, allows visa holders to buy or build one home worth at least $5 million. The exemption ends months of negotiations between National and New Zealand First, which helped introduce the original foreign buyers’ ban in 2018.
According to the government, the $5 million threshold ensures more than 99% of New Zealand homes remain protected from foreign purchase. Only around 10,000 homes across the country qualify, with 80% of them in Auckland and 10% in Queenstown.
Deputy Prime Minister David Seymour confirmed that the exemption will be added to legislation already before Parliament and is expected to pass before the end of the year. Immigration Minister Erica Stanford noted that while the policy will attract new interest, it will involve “hundreds of people, not tens of thousands.”
Key Points
- Holders of the Active Investor Plus visa can purchase or build one luxury home valued at $5 million or more
- Rural, farm and sensitive land remain excluded from the exemption
- The government says the change balances housing market protection with foreign investment.
Immigration Investment and Economic Impact
The Active Investor Plus visa requires investors to commit a minimum of $5 million over three years in higher-risk ventures, or $10 million over five years in lower-risk options. Immigration New Zealand data shows 308 applications to date, representing at least $1.6 billion in potential investment, with nearly 40% of applicants from the United States.
The government maintains the move will not drive up property prices, given the limited number of eligible homes and buyers. Critics, however, including Labour and the Greens, argue the exemption risks inflating high-end property prices and undermining affordability.
Stay informed on how New Zealand’s property and immigration policy changes could affect your investments and the housing market. For the latest updates, visit Immigration New Zealand’s official website: https://www.immigration.govt.nz/
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