New Zealand weighs relaxing home-buying ban for rich foreigners

Sign up now: Get STs newsletters delivered to your inbox

The exemption would apply to houses worth at least NZ$5 million (S$3.78 million) and be limited to those holding so-called golden visas, sources say.

PHOTO: UNSPLASH

WELLINGTON – New Zealand is considering letting some wealthy foreigners buy luxury homes, creating an exemption to the current ban on overseas buyers as it seeks to attract more high-net-worth investors.

The coalition government is expected to discuss the proposed change at a Cabinet meeting on Sept 1, according to people familiar with the matter.

If the measure is approved, an announcement would likely follow soon after, the people said.

The exemption would apply to houses worth at least NZ$5 million (S$3.78 million) and be limited to those holding so-called golden visas, said the people, who asked not to be named because they weren’t authorised to speak publicly.

Any changes won’t take effect until year-end, when reforms to the Overseas Investment Act are passed into law.

A spokesperson for Prime Minister Christopher Luxon declined to comment.

In April, New Zealand

relaunched its golden visa programme

The visa relaunch coincided with increased global geopolitical tension resulting in a surge of interest from wealthy people looking for a haven.

Participants in the scheme, however, were banned from buying property in the country.

There were 267 applications for the golden visa that covered 862 people as at Aug 8, amounting to a potential total minimum investment of NZ$1.63 billion, data from Immigration New Zealand shows.

Around