Is the Foreign Buyer Ban About to Change? What It Could Mean for NZ Property

It looks like changes to New Zealand’s foreign buyer ban might be coming—possibly as soon as this year.

Deputy Prime Minister Winston Peters recently confirmed that the Government is working on potential changes to the 2018 law that blocks non-residents from buying existing residential homes. While no final decisions have been made yet, Peters has indicated that discussions are active within his party (NZ First) and across the wider coalition, with an announcement expected later this year.

But despite the speculation, Peters insists NZ First isn’t “softening” its stance.

So, what’s really happening—and what could it mean for New Zealand’s property market?

A Refresher: Why the Ban Exists

The foreign buyer ban was introduced in 2018 when Labour governed in coalition with NZ First. Under the Overseas Investment Act, residential housing was deemed “sensitive,” preventing most non-residents from buying existing homes. The intent was to keep property more accessible to everyday Kiwis by reducing international competition.

Why the Government is Reconsidering

The current coalition is focused on economic growth, and attracting foreign capital is a big part of that strategy. As part of the push, they've already reworked the “Active Investor Plus Visa,” lowering the minimum investment threshold from $15 million to $5 million to attract more global investors.

There’s growing interest in giving high-value investors the ability to purchase homes—on New Zealand’s terms.

Winston Peters says any changes would require significant investment into the New Zealand economy—not just the purchase of a pricey home.

Not $2 Million—Think Bigger

National’s 2023 election policy proposed allowing foreigners to buy homes valued at over $2 million, but with a 15% tax. That idea didn’t survive coalition negotiations, and Peters remains opposed to the $2m threshold, calling it “a nonsense.”

Both Peters and PM Christopher Luxon have hinted that any new limit would likely be higher—possibly around $5 million or more. Luxon has even admitted the $2m mark may have been too low.

What This Means for the Market

If the foreign buyer ban is adjusted, we could see a return of ultra-wealthy overseas buyers—particularly those looking at luxury homes in areas like Queenstown, Auckland’s waterfront, or Waiheke Island.

However, Peters has made it clear that these buyers would need to invest in more than just property. This isn’t about opening the floodgates; it’s about attracting serious capital under carefully managed conditions.

And for the average homebuyer? Not much would change. As John Key put it, “If I’m a billionaire in China… I’m not going to wake up and think I want to buy an $800,000 house in Pakūranga.”

Whether you’re a homeowner or a buyer watching from the sidelines, it’s worth keeping an eye on how these conversations develop. The balance between protecting our housing stock and encouraging foreign investment is delicate—but it’s clear the Government sees value in getting it right.

Stay tuned—an announcement is expected later this year.