Overseas buyers are hungry for New Zealand. Is 2025 the year they get fed?
It’s a real estate broker’s worst nightmare.
Imagine securing the listing for a USD $20 million mansion on the shores of Lake Wakatipu in Queenstown, the glittering jewel in New Zealand’s South Island. After months of sluggish activity, the inquiries start rolling in all at once. One from India, another from Germany, and two from the United States. Among them lies an enticing all-cash offer.
The catch? None of these eager buyers can seal the deal, thanks to New Zealand’s foreign buyer ban. But whispers of change happening in early 2025 are stirring, bringing hope to agents and overseas investors alike.
The ban was designed to keep housing affordable for locals by barring overseas residents (except Australians and Singaporeans) from purchasing existing homes. It was introduced in 2018 by then-Prime Minister Jacinda Ardern, and has been a thorn in the side of high-net-worth individuals seeking a slice of Kiwi paradise ever since.
Prime Minister Winston Peters, leader of the New Zealand First party, has floated the idea of easing restrictions for what he calls the “right investor” in the past. Details remain hazy, but his suggestion includes imposing a significant minimum investment threshold. “A lousy $20 million” won’t cut it, Peters quipped to reporters in October. It’s not the first time that a potential repeal has been the topic of conversation – the ban was a hot-button issue in the 2023 national election.
New Zealand’s scenery isn’t just easy on the eyes—it’s the perfect setting for seclusion. (PQ Property Intelligence)
Now, the ban is under renewed scrutiny. According to Anthony Morsinkhof of PQ Property Intelligence, there’s growing speculation about a potential amendment to the ban as early as January. Patience is key, he tells his hungry overseas buyers.
The appeal of seclusion
New Zealand’s appeal isn’t just about its breathtaking landscapes, though it has plenty of those. Snow-capped peaks, crystal-clear lakes and rolling green hills are part of the package. So is a coveted sense of stability and seclusion. “We’re the Switzerland of the Pacific,” says Morsinkhof.
That could explain why there’s been a “noticeable difference” in inquiries from overseas buyers post the U.S. election – particularly at the ultra-luxury end of the market. Interest is largely stemming from hedge funds, institutional investors and wealthy expats seeking a return to their roots, Morsinkhof said.
It’s not hard to see why. With world-class golf courses, acclaimed wineries and a laid-back attitude, New Zealand is a haven for those who want to escape the geopolitical tensions back home while still maintaining a high quality of life. Add to that the convenience of five international airports and a cheaper cost of living, and it’s clear why demand persists despite the restrictions.
Creative workarounds
While the foreign buyer ban restricts residential property purchases, it doesn’t apply to commercial assets or boutique lodges. Enter properties like Ranginui Retreat in Wellington, which combines charming guest cottages with grazing paddocks, or Carrington Estate, a 3,000-acre property featuring vineyards, a championship golf course and nearly four miles of white sandy beaches on the Karikari Peninsula.
Though the foreign buyer ban may put residential purchases out of bounds, it leaves the door open for boutique lodges like Ranginui Retreat in Wellington. (PQ Property Intelligence)
“Buyers are drawn to iconic properties with substantial acreage,” says Morsinkhof. “The challenge is that many of these estates are tightly held, passed down for generations.”
For now, New Zealand’s foreign buyer ban remains a significant hurdle. But with a potential reform within the sightlines, the promise of new opportunities for international investors might not be far off.
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