Rethinking New Zealand's foreign buyer ban to boost investment
New Zealand Deputy Prime Minister Winston Peters (pictured above) has hinted at a potential relaxation of the country’s foreign buyer ban for major investors.
In a recent discussion with Mike Hosking on Newstalk ZB, Peters described the possibility of lifting the ban in specific cases as a “work in progress.”
This move could welcome overseas investors willing to make substantial contributions to the New Zealand economy.
Critique of previous policies
The current stance on the foreign buyer ban was critiqued by Peters, particularly targeting the National Party’s previous policy proposal, which suggested lifting the ban for purchases over $2 million, OneRoof reported.
Peters labeled this approach as “massively faulty” and claimed it failed to attract the expected level of investment.
Instead, Peters advocates for a more nuanced framework that ensures investments bolster employment and export sectors.
Strategic investments and homeownership
Peters expressed openness to revisiting the policy for foreigners who are prepared to invest significantly in other economic areas of New Zealand.
“If someone has come to this country like they do to other countries and brings $50 million to invest in a huge industry and to ensure that we’ve got employment where there’s no employment now, potential exports where there are no exports in this area now – then we will look at it certainly and that’s always been our view,” Peters said.
He emphasised the importance of attracting serious investors committed to the New Zealand economy rather than those seeking merely a “bolthole.”
Real estate professionals weigh in
Ross Hawkins, a Ray White agent specialising in high-end listings, supported the idea that significant economic investors should be allowed to purchase property.
Hawkins suggested that for those investing in setting up businesses, owning a home is more desirable than renting.
He proposed further exemptions, such as allowing overseas buyers to purchase properties worth over $5 million or new builds, which could stimulate development and economic growth, OneRoof reported.
Government and industry perspectives
Recent discussions within the government and feedback from industry professionals indicated a growing consensus that changes to the foreign buyer ban may be necessary to stimulate investment.
New Zealand Sotheby’s International Realty’s managing director, Mark Harris, and Bayleys agent John Greenwood, noted increased activity and confidence in applications to the Overseas Investment Office, suggesting a shift towards more open investment policies, OneRoof reported.
Looking forward
The potential policy revision could integrate foreign residential purchases into New Zealand’s Active Investor Plus program, which aims to attract significant foreign investment in local businesses and infrastructure while boosting employment.
This strategic approach seeks to balance investment needs with economic growth, ensuring that foreign capital contributes positively to New Zealand’s development.
