Source: New Zealand Sotheby’s International Realty
A New Zealand real estate leader is applauding the Government’s decision to amend the ban on foreign property buyers.
Prime Minister Christopher Luxon today confirmed that foreign investors with an Active Investor Plus residency visa will now be able to buy or build one home in NZ, with a minimum value of $5 million.
New Zealand Sotheby’s International Realty managing director Mark Harris says it’s a prudent move by the Government.
“We are delighted by the announcement,” he says. “Given the state of NZ’s economy, we need as much productive investment as we can get. By allowing foreigners to own a holiday home here, it encourages them to invest in other business ventures in NZ, which then leads to capital expenditure and job creation.
“We have many examples of foreign holiday homeowners here who – prior to 2018 – contributed greatly to the community with business investment. In recent years, Australia has benefitted from the investors NZ has turned away.”
Harris says the impact from allowing foreign buyers to enter the NZ housing market is negligible, but the economic boost is significant. The minimum value of a foreign investor-purchased property is set at $5 million, which equates to less than 1% of NZ homes.
“The ban was introduced to assist first home buyers but it’s had minimal effect – prices have still increased dramatically over the past six years,” he says. “Allowing foreign buyers into the country while introducing a value hurdle protects the domestic buyer and limits the number of investors who can purchase.”
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