Source: New Zealand Sotheby’s International Realty
October 12, 2026
A New Zealand real estate leader is calling on the incoming Government to consider lowering the Active Investor Plus property purchase threshold in some regions.
New Zealand Sotheby’s International Realty (NZSIR) co-founder and managing director Mark Harris says lowering the current $5 million minimum in specific regions, such as Wellington, could be a prudent move for 2027.
“Since the AIP exemption came into effect in March this year, there have been only 174 residential transactions above the $5 million threshold – 32 of which have sold to AIP buyers,” he says. “If the policy objective is to attract greater overseas investment into NZ, there is an opportunity to review whether the current settings are delivering that outcome.”
Harris says one approach would be to consider a lower threshold in regions outside of Auckland and the Southern Lakes, where approximately 75% of qualifying transactions have occurred to date.
“A more regionally targeted model could help attract investment into markets facing softer conditions – such as Wellington – while supporting economic activity and improving sales opportunities for Kiwi vendors,” he says.
Another option could be to introduce a regionally adjusted threshold based on local property values. For example, the gateway value could be linked to a multiple of each region’s median house price. In Queenstown, where the median value is approximately $1.75 million, a 300% multiplier would create a threshold of around $5.25 million. In Wellington, where the median value is closer to $1 million, the equivalent threshold would be $3 million.
“This would preserve the intent of the policy while creating a more level playing field across different markets,” Harris adds.
Harris says NZ can also look to successful international examples to improve our own policies. In Australia, foreign investment is often directed towards new builds and development opportunities – rather than existing housing stock – to help encourage construction activity and employment.
Although amendments to the AIP policy would be sensible, Harris warns that too many changes will have the opposite effect on the property market.
“Buyers, sellers and investors are still adjusting to a number of significant changes introduced this year, and further amendments in the near-term risk creating uncertainty at a time when confidence is gradually returning,” he says. “Therefore, we don’t need another round of broad policy change under a reformed Government; we need certainty and confidence, enhanced with small, targeted refinements that help investment flow into more areas of the country.”
About New Zealand Sotheby’s International Realty
New Zealand Sotheby’s International Realty is a specialist agency that focuses on the sale of premium property through quality marketing and global networking. Founded in 2005 by Mark Harris and Julian Brown, the NZ branch of the global company has 32 offices nationwide – Arrowtown, Auckland Eastern Bays, Auckland North Shore, Auckland Ponsonby, Auckland Remuera, Auckland South East, Waiheke Island, Bay of Islands, Cambridge, Christchurch City, Christchurch Sumner, Cromwell, Greytown, Hamilton, Havelock North, Hutt Valley, Jack’s Point, Kapiti, Manawatu, Marlborough, Masterton, Napier Ahuriri, Napier City, Napier Taradale, Nelson, Orewa, Rotorua, Taupō, Waipu, Wānaka and Wellington, and its head office in Queenstown.
It is part of Sotheby’s International Realty – the world’s leading luxury real estate company – with a global network of approximately 1,110 offices and more than 26,100 affiliated independent sales associates throughout 84 countries and territories. In 2025/2026, New Zealand Sotheby’s International Realty achieved a landmark industry recognition, winning the supreme global title of Best International Property Agency/ Consultancy at the International Property Awards, following its success as Best Property Agency/Consultancy in Asia Pacific. This achievement reinforces NZSIR’s position as one of the world’s leading real estate brands and recognises its commitment to excellence in marketing, client service and business performance.