Rich Americans ready to swoop in if New Zealand relaxes home-buying ban
WELLINGTON – Wealthy Americans eying New Zealand as a haven are hoping the government will soon relax a ban on house sales to foreigners, according to advisers.
Since New Zealand overhauled its golden visa program in April, there has been a surge of interest from would-be US investors, but the inability to buy a house in the country remains an obstacle, said Mr Marcus Beveridge, managing director at Queen City Law in Auckland who specialises in foreign investment.
'A sensible way forward would be that anyone who successfully obtains a residence visa under the government golden visa scheme is eligible to buy a family home here,' Mr Beveridge said. Telling investors they can't buy a house 'really sticks in the craw,' he said.
Immigration Minister Erica Stanford said in April that talks about changing the policy were happening 'at a leader-to-leader level' in the coalition government. There is speculation it could announce a relaxation of the ban in the budget on May 15 though politicians have not given any indication that such a step is imminent.
Prime Minister Christopher Luxon told reporters on May 19 that lifting the ban 'is not the be-all and end-all of attracting investment.'
New Zealand, which suffered a sharp recession in 2024, wants to attract more foreign capital to spark economic growth and fund new infrastructure. Its remote location in the South Pacific makes it a desirable destination for the rich seeking a haven in a picturesque and politically stable country.
One of the government's moves to attract foreign investment was a reworking of the golden visa, which gives residency to foreigners if they invest a certain amount of money.
The revamp scrapped the English-language requirement, reduced the time investors must spend in the country, lowered investment thresholds and simplified eligibility categories.
In the six weeks since the changes were introduced, 104 visa applications covering 346 individuals have been submitted, according to government data – almost as many as were received in the previous two-and-a-half years under the old settings.
The applications represent a minimum NZ$620 million (S$476 million) in investment. Strikingly, more than half come from the US.
Mr Jim Rohrstaff, a partner at luxury real estate broker Legacy Partners in Auckland, said there is a 'tremendous amount of pent up demand' from well-off Americans to buy homes in New Zealand.
'Not only because of the things that are going on politically in the world, which are quite divisive, but I think Americans have always been fascinated by New Zealand,' said Mr Rohrstaff, a dual American-New Zealand citizen. 'It's a beautiful place. It's a long way from everything.'
The ban on house sales to foreigners was imposed in 2018 by then-Prime Minister Jacinda Ardern amid concern about unaffordable housing and following a passport-for-sale scandal involving PayPal co-founder Peter Thiel.
Only citizens and tax residents of New Zealand, and Australians and Singaporeans – due to pre-existing trade agreements – are allowed to buy property.
The ruling National Party campaigned on loosening the ban ahead of the 2023 election, proposing to allow foreigners to purchase homes worth NZ$2 million or more. However, coalition partner New Zealand First blocked the policy during government formation talks.
Since then, New Zealand First leader Winston Peters has said he's open to allowing foreigners to buy expensive houses if they also invest in the country.
Mr Rohrstaff, who develops exclusive golf courses, said he has been in contact with numerous wealthy and influential Americans who would love to spend more time in New Zealand, but not in a hotel room.
'They're staying in some of the beautiful luxury lodges around the country,' he said. 'But there is an expiration date to that visit.'
Mr Beveridge said he believes a lifting of the ban is inevitable, even it doesn't happen in this week's budget.
Mr Mark Harris, managing director and founder of New Zealand Sotheby's International Realty, said the revamped golden visa was attracting applications, but the fact that people still had to become tax residents in New Zealand in order to buy a house was problematic. Under New Zealand law, being a tax resident means an individual needs to have spent 183 days in the country in any 12-month period.
'We are seeing a lot more inquiries and web traffic, particularly from the US, but unfortunately a lot of clients in the high-net-worth category just aren't able to spend six months at one time,' he said. 'It's still a road block to them buying a home to enjoy.' BLOOMBERG
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18 hours ago
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Straits Times
18 hours ago
- Straits Times
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