Latest news with #ForeignBuyersAct
Scoop
23-07-2025
- Business
- Scoop
NZ First Signals Change To Foreign Buyers Ban Could Be Announced This Year
, Acting Political Editor NZ First leader Winston Peters says he expects an announcement "soon" clearing the way for wealthy foreign investors to buy high-value houses in New Zealand. But he insists the foreign buyers ban - which prevents most foreigners from purchasing existing houses - will remain in place, unchanged. "We're talking about investment. We're changing those rules and what goes with them. You have to be patient - and we'll tell you what the details are," Peters told reporters on Wednesday. "But the Foreign Buyers Act is not changing." During coalition negotiations, NZ First blocked National's proposal to allow foreigners to buy houses worth more than $2 million, contingent on a 15 percent tax. But Peters - who helped introduce the ban in 2018 as part of the Labour NZ First coalition - later said he was open to revisiting the rules "for the right investor". A spokesperson on Wednesday said discussions were ongoing about the appropriate investment threshold but suggested it would be "substantial". "New Zealand First is pursuing consultation on the matter and is looking at the government being able to make an announcement by the end of the year." Any proposed changes would need to create jobs and benefit the wider economy without disrupting the housing market, the spokesperson said. Speaking later at Parliament, Peters told reporters they would not have to wait very long for an announcement. "I'm not the one totally in control of the answer, but I would imagine by the end of 2025," he said. Peters repeatedly stated that "the foreign buyers ban will remain" but said investment rules could be changed to allow those investing "millions of dollars" to buy a house at a certain cost - "and that cost is not $2 million". "We're talking about investors. They're bringing billions to this economy," he said. "They're not buyers." Back in October, Peters told NewstalkZB he would consider changes for the "right person with the right investment" - but it would need to be far more than "a lousy $20 million". Addressing reporters on Wednesday, Prime Minister Christopher Luxon confirmed the timeline outlined by Peters but declined to shed any light on the "ongoing coalition negotiations". "When we're ready to talk about it, we will," Luxon said. "You've heard what Winston said... and that's a fair reflection of where things are at." Luxon has previously conceded National set its $2m threshold "too low" and suggested $5m or $6m would be more reasonable. ACT leader and associate finance minister David Seymour - who's responsible for the Overseas Investment Act - told reporters he would support any progress on the issue. "I'd be there with bells on, because I think allowing our friends around the world to come to our country, bring their money and live here is generally - there's exceptions - but generally a win-win for New Zealand." In April, the government made changes to the Active Investor Plus Visa - the so-called 'golden visa' - easing the path for wealthy foreigners to gain residency through investment. Immigration New Zealand last month confirmed it had received nearly 200 applications since the changes were introduced.
NZ Herald
23-07-2025
- Business
- NZ Herald
Prime Minister Christopher Luxon tight-lipped amid speculation of foreign buyers ban change
The Herald understands no proposal has yet been put before Associate Finance Minister David Seymour, who has responsibility for the Overseas Investment Act . But it's unlikely changes to loosen the current ban would face resistance from Seymour, who has been critical of the measure . Luxon on Wednesday said there were 'ongoing conversations' and confirmed to the Herald that he was also working to make an announcement this year. He would not detail what threshold he would like set, but has previously suggested about $5 million, which would be an increase from National's 2023 policy of allowing foreigners to buy houses worth $2m and more and taxing that sale at 15%. 'We've got ongoing conversations as we work together in our coalition in the way that we do, and when we're ready to talk about it, we will,' Luxon said. 'When we come out with an answer, you will hear about it and we'll be very clear about it all. But for right here, right now, we've got ongoing conversations.' He said Peters' comments were a 'fair reflection of where things are at'. Prime Minister Christopher Luxon was tight-lipped on Wednesday about policy to allow foreign investors to purchase residential property here. Photo / Mark Mitchell Peters on Wednesday afternoon said the 'Foreign Buyers Act is not changing'. The legislation amended in 2018 to classify residential houses as sensitive, and therefore not open to purchase from overseas people, is the Overseas Investment Act. NZ First said the rules would change for investors bringing millions to New Zealand's economy. 'They're investors, they're not buyers. You're not going to get a house key just by walking into the country in the way that other parties believed,' Peters said. 'If you're investing millions of dollars, seriously, we look at you having the right to back it up with the buying of a house in New Zealand at a certain cost. That cost is not $2m.' NZ First kiboshed National's foreign buyer's tax during the 2023 coalition negotiations and Peters repeated on Wednesday that it was 'fiscally never going to work'. The National-NZ First coalition agreement makes reference to the ban when it says: 'Tax relief will be progressed as set out in National's Tax Plan, but will not include a repeal of the foreign buyer's residential property ban, with income tax reductions coming into force from July 1, 2024.' NZ First leader Winston Peters says the rules will change for investors bringing millions to New Zealand's economy. Photo / Mark Mitchell Seymour told the Herald that if NZ First changed its historical position, 'there wouldn't be any complaints from me'. 'I'd be there with bells on, because I think allowing our friends around the world to come to our country, bring their money, and live here is generally – and there are exceptions – but generally, a win-win for New Zealand.' In an interview with the Herald this week, Peters denied his party was 'softening' its approach. 'The idea that for $2m you could come into this country and get a key and that's your investment was a nonsense,' Peters told the Herald. 'We said so before the election. We also debunked the costings for it, and were joined not long after that by economists who said that New Zealand First was right. 'We're saying if you're coming here with millions of dollars to invest in this country, then yes, you could buy a house, and we're setting the terms for that.' Jamie Ensor is a political reporter in the NZ Herald press gallery team based at Parliament. He was previously a TV reporter and digital producer in the Newshub press gallery office. In 2025, he was a finalist for Political Journalist of the Year at the Voyager Media Awards.
