Foreign Investment Update Could Boost New Zealand’s Luxury Property Market

New Zealand has made a big change to its foreign investment rules. Overseas buyers who are willing to invest 5 million dollars or more can now buy one home in New Zealand. For the luxury property market this is a big deal and should create more movement for both buyers and sellers.

Over the last few years there has been less activity in high end real estate. Fewer people were selling and that meant fewer people were buying. Allowing wealthy buyers back into the pool should create fresh momentum. It could set off a cycle of homes being listed and sold that goes beyond just international buyers and brings new energy to the market.

Since 2021 there has been a sharp decline in luxury home sales in New Zealand. Sales of properties over 5 million dollars have fallen by nearly 50 percent, with just over 150 homes in this price bracket sold in 2024 compared to more than 300 in 2021. The foreign buyer changes are designed to help lift those numbers again. By 2026 we could see a real bounce back in listings and sales across the top end of the market as confidence returns and more international buyers come back into play.

Project Fold in Ōmarino, Bay of Islands

Why the Government Made the Change

The ban on foreign buyers first came in back in 2017. The idea was to protect everyday New Zealand homes from extra demand and rising prices. The problem was that it also stopped genuine investors who could have contributed to New Zealand’s economy.

The government’s new move is a more balanced approach. It allows big investment at the top end while still protecting the average home. Since the Active Investor Plus residency opened in April there have been over 300 applications. That could add up to more than 1.8 billion dollars in new investment for New Zealand’s economy.

Rue D’Amarres, Gulf Harbor

What This Means for Luxury Homes

Looking ahead to 2026 many people expect to see more listings and sales in the top 1 percent of New Zealand properties. This includes luxury homes in Auckland and waterfront properties across the country. For anyone thinking of selling a high end home now could be the right time to prepare. More international eyes on New Zealand means more opportunities.

At NZ Property Films we focus on filming and marketing these types of properties. With increased demand for luxury homes in New Zealand the quality of marketing is going to matter more than ever. A well presented film or photo set can make a property stand out to foreign buyers who are comparing options from overseas.