In a move to help boost New Zealand housing prices at the luxury end of the market, the Government has passed legislation to allow “golden visa holders” the right to buy residential property.
The new policy gives residency in exchange for property investments of $5 million or more. Previous restrictions have kept foreigners out of the NZ property market since 2018, according to a Bloomberg report.
New Zealand already has a global reputation as an attractive property market – not necessarily because of the prices or architecture, but for the fact it’s pretty much the furthest country from any geopolitical troubles that might occur in the Northern Hemisphere.
Some 37% of 491 golden visa applications covering 1,571 people have been from the United States, according to data on December 15.
It is estimated some 7,000 properties in New Zealand would command a price of $5 million or more.
The Prime Minister, Christopher Luxon, said in a statement recently: “Globally, New Zealand has a deserved reputation as a great place to live and we want to grow our economy.
“By opening our door just a little to allow significant investors to own a home, we will help attract more of those who want to contribute to the community and country.”
The Bloomberg report singled out the elite area of Waiheke as a potential target area for golden visa holders. Its correspondent described it as having “an almost other-worldly feel” despite being just a 30-minute ferry ride from Auckland.
Clearly believing Waiheke would appeal to Americans, it reported that “fewer than 10,000 people live permanently on the subtropical island, with another 3,500 or so coming and going from holiday homes, or baches as New Zealanders call them”.
Local real estate agents are no doubt looking forward to the wave of Americans seeking NZ property. A spokesman for Sotheby’s International Realty told Bloomberg: “To those properties above $5 million and particularly above $10 million . . . we’re going to see the impact. It will also encourage vendors to come out of the woodwork and list with a bit more confidence.”