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Sell with us- Mark Harris
- 1st Apr 2025
A Welcome Investment
Mark Harris tells why recent visa rule changes means New Zealand’s luxury property market is back on the radar for international investors – and what that means for high-end home sellers.
"Over the years, I’ve had countless conversations with international buyers keen to invest in New Zealand. They see our country as a safe haven – a place with a stable economy, stunning landscapes and a high quality of life. However, previous immigration policies often discouraged investors, limiting the flow of global capital into our country and, ultimately, the property market.
A recent shake-up to the Active Investor Plus Visa – aka the ‘Golden Visa’ – is set to change that, alleviating the program’s exceedingly stringent investment requirements that resulted in minimal uptake from potential applicants."
The new scheme, which took effect on April 1st, offers a more flexible and investment-friendly framework, with a focus on attracting high-net-worth individuals seeking faster access to residency. For those in the high-end real estate sector, this presents a potential opportunity. We’re already seeing a climb in our overseas website traffic and a significant increase in international enquiries from those looking to invest in property as part of their residency pathway. Wealthy individuals are taking a renewed interest in what New Zealand has to offer.
Here’s why: a new ‘Balanced’ category offers less risky investment options compared to the previous framework. While the upfront investment remains high, with a minimum commitment of NZD $10 million over five years, a key shift is the inclusion of property investment. This change allows investors to contribute to new residential developments – that has potential to boost the country’s housing stock while also supporting the economy. Though investors cannot reside in these properties, their participation will help strengthen the development sector and drive demand for new-builds and off-the-plan properties, benefiting sellers in the process.
This is where the real opportunity lies. With investors required to commit funds within six months, we can expect to see faster transactions and a possible increase in demand for qualifying developments. Developers and sellers who have investment-ready stock could see increased interest and stronger pricing.
Another game-changing aspect of these reforms is the fast-tracked resident visa option for investors who meet the Active Investor Plus criteria. Once approved, these individuals will also receive permission to purchase residential property for personal use. This is particularly relevant to the premium property market. High-net-worth individuals often look to establish a home base in prime locations like Auckland, Queenstown and Wellington.
For sellers of premium properties, this could mean increased competition among buyers, and potential price growth. We’ve seen similar trends play out in the past – whenever policy changes create easier access for international investors, demand in the top-tier property market spikes. While these changes won’t dramatically impact the mid-to-lower end of the housing market, they do signal positive movement at the upper levels, where overseas investment plays a key role.
At New Zealand Sotheby’s International Realty, we are uniquely positioned to facilitate these transactions. We are working closely with Private Capital Group, an organisation that has launched a specialised fund to assist investors entering the new Active Investor Plus categories.
With our unparalleled global network, we can connect international investors with both development opportunities and high-end residential properties that align with their needs.
This is a step in the right direction for NZ. It will bring valuable capital into the country, support much-needed new housing supply and inject fresh energy into the luxury real estate sector. The bottom line? New Zealand is back on the radar for wealthy global investors and that’s good news for our premium property market.