As of 1 September 2025, the New Zealand Government has announced a significant change: residents holding investor visas — including Active Investor Plus Visa (Golden Visa), Investor 1 Visa and Investor 2 Visa — may now purchase or build a home in New Zealand even if they do not live here permanently.
Why This Matters
Before 2018, foreign investors from overseas could freely buy New Zealand residential properties — whether or not they ever set foot in the country. This led to speculative buying, with properties often left empty and sold later for tax-free gains. The result? Inflated demand, rising home prices, and reduced accessibility for local buyers.
To curb this, the Overseas Investment Amendment Act 2018 introduced a broad ban on most non-resident foreigners buying existing homes. While well intended, the ban also affected genuine investor-residents — even those who had made substantial, long-term investments in New Zealand. Many of these investors found themselves unable to own a home unless they lived in NZ full-time.
What the New Policy Changes
Under the revised rules:
- Eligible visas include Active Investor Plus, Investor 1, and Investor 2 (including those who later obtained Permanent Residence under those visas).
- Investors must meet investment thresholds (outside of the home itself), typically involving a minimum of NZD 5 million invested into acceptable — arms-length — productive NZ investments.
Investments must be held for at least three years, pursuant to the rules for the “Growth” stream under Active Investor Plus.
Importantly, permanent residence or full-time living in NZ is no longer a requirement to purchase or build a qualifying home.
What This Means for the Market
Because the exemption applies only to very high-value homes (NZD 5 million+), the impact on the general housing market is expected to be minimal. These are among the top ~1% of properties by value. Moreover, eligible buyers under these investor visas number only in the hundreds — far too few to significantly influence overall supply or prices.
Only a small number of properties will exchange hands under this exemption in the short to medium term — likely fewer than 1,000 homes, representing a tiny fraction (~0.05%) of New Zealand’s entire residential housing stock.
Broader Impacts
- Encouraging investment: The change may boost applications for investor visas — especially from those wanting to invest but unable to live in NZ full-time.
- Redressing past limitations: Investor 1 and 2 visa holders who purchased homes before the 2018 ban can now sell and replace them — resolving a major grievance over retrospective policy application.
- Strengthening long-term ties: Allowing property ownership fosters connection with New Zealand — socially, economically, and in terms of community involvement — rather than having investors remain transient.
What to Know Before You Buy
If you hold one of the eligible visas and meet the investment requirements, you may now be able to buy or build a home — but it will need to meet the NZD 5 million threshold (or applicable settings under the visa category).
As always, it is wise to seek independent legal advice and carefully check the property’s compliance with any relevant regulations (especially since this is a high-end, limited-scope policy).
