New Zealand Considers Easing Ban on Foreign Property Buyers

New Zealand is weighing plans to relax its current ban on foreign property purchases by allowing wealthy overseas investors to buy luxury homes, in a bid to attract more high-net-worth individuals.

According to sources familiar with the matter, the coalition government is expected to discuss the proposed changes at a cabinet meeting on Monday. If approved, the decision could be announced shortly afterwards, Bloomberg reported.

The exemption would apply only to properties valued at a minimum of 5 million New Zealand dollars (around 3 million US dollars) and would be limited to holders of so-called golden visas. The scheme is designed to encourage foreign investment while keeping most of the housing market off-limits to overseas buyers.

Any changes would not take effect until the end of next year, once the government finalises and passes its new Overseas Investment Bill.

A spokesperson for Prime Minister Christopher Luxon declined to comment on the proposal.

New Zealand introduced strict restrictions on foreign home ownership in 2018 amid concerns over soaring house prices. However, the government now appears to be reconsidering the policy as it seeks to attract international capital and boost economic growth.