After years of restricting overseas property ownership, New Zealand is changing course. The government is relaxing rules for wealthy foreigners under the Active Investor Plus visa, a move aimed at attracting capital, boosting confidence, and stabilising its slowing housing market.

For investors, this move raises the question: is New Zealand once again a serious contender in the international property market?

New Zealand’s Active Investor Plus Visa: What Foreign Buyers Should Know

• The scheme allows foreigners to buy or build property if they invest at least NZ$5 million (S$3.78 million)
• Investment pathways include NZ$5 million in high-growth managed funds over three years, or NZ$10 million in bonds, equities, and property developments for five years
• Investors must also spend 117 days in New Zealand during a five-year period to qualify

Why New Zealand is Relaxing Property Rules in 2025

• Economic signals are weak: unemployment has climbed to 5.2%, consumer confidence is at a 10-month low, and property prices have fallen for five consecutive months
• Only around 7,000 homes (less than 0.4% of housing stock) are valued above NZ$5 million, so the policy specifically targets the luxury segment
• The shift is politically contentious, as it reverses earlier restrictions designed to protect locals from being priced out

Impact on Locals vs Foreign Investors

• For locals, the change has minimal effect, since everyday New Zealanders are not competing for NZ$5 million homes.
• For foreign buyers, the new rules open up rare opportunities to secure trophy properties in iconic markets like Auckland and Queenstown
• The government’s aim is to bring liquidity back into the top-tier property market without distorting housing affordability for ordinary citizens

Opportunities and Risks for Global Investors

• Luxury homes are trading at lower prices after months of decline, making this a potential entry point for investors
• Residency rights tied to the visa make the policy attractive to high-net-worth individuals seeking both property and lifestyle
• Risks remain, including possible future policy reversals if political opposition grows and uncertainty in New Zealand’s wider economy

Key Takeaway

New Zealand is once again welcoming wealthy foreign buyers, but only at the very top end of the market. For investors, the Active Investor Plus visa offers both property ownership and residency privileges, though political risks should be carefully considered.

At PropertyGiant Singapore, we work with clients to compare international opportunities like this against local and regional markets, ensuring investment strategies remain diversified and resilient.

FAQs: New Zealand Property Rules (2025)

Can foreigners buy property in New Zealand in 2025 under the new rules?

Yes. The Active Investor Plus visa allows foreigners to purchase property in New Zealand if they meet the minimum investment requirement of NZ$5 million.

Why is New Zealand’s 2025 property rule change for foreigners controversial?

The policy reverses earlier restrictions that limited foreign ownership to protect locals. Critics argue it benefits wealthy investors while doing little to improve housing affordability for ordinary New Zealanders.

Which New Zealand properties can foreigners buy under the Active Investor Plus visa?

Foreign buyers can typically purchase luxury homes valued above NZ$5 million, concentrated in locations such as Auckland, Queenstown, and resort towns.

What are the risks of buying property in New Zealand as a foreign investor in 2025?

While luxury prices are lower after months of decline, risks include potential policy reversals due to political opposition, as well as ongoing uncertainty in New Zealand’s wider economy.