Market Update 1 Sep 2025: Overseas Buyers Are Back (Kind Of)
- Ryan Smith
- Sep 5
- 4 min read
Giving you exclusive insights into the New Zealand property market and keeping you updated with the latest in property investment concepts.
Property market update for September 1st, 2025.
Foreign Buyers Can Now Purchase NZ Property, well, kind of.
The latest policy change from the National Government is allowing overseas buyers in New Zealand to purchase real estate above $5M.
In a significant policy shift, the change is tied to the Active Investor Plus visa and applies only to properties valued at NZ$5 million or more.
This update marks a targeted reopening of the property market to foreign capital, with a clear focus on ultra-premium real estate. For most investors, the impact will be minimal, but for developers and vendors operating at the top end of the market, it could signal a new wave of opportunity.
What Is the Active Investor Plus Visa?
The Active Investor Plus visa is designed to attract high-net-worth individuals who are willing to invest significant capital into New Zealand businesses.
To qualify, applicants must:
Invest at least NZD $5 million if you invest under the Growth category, or at least NZD $10 million if you invest under the Balanced category, in acceptable investments in New Zealand
Transfer your investment funds to New Zealand
Have earned or acquired your investment funds lawfully
Be a fit and proper person
Meet the other requirements of this visa
As part of the visa’s incentives, eligible investors can now purchase one residential property, provided it meets the $5M+ threshold and is not subdivided or used for short-term rental.
Why the Policy Is Changing
The Government’s goal is to attract global capital into New Zealand’s business ecosystem, while protecting housing affordability for everyday Kiwis.
By setting a high entry point, the policy avoids reigniting the affordability concerns that led to the original foreign buyer ban in 2018.
This is not a blanket reopening of the property market. It’s a targeted strategy aimed at stimulating business investment, with property access as a secondary benefit.
What This Means for the Property Market
The vast majority of residential transactions in New Zealand fall well below the $5M threshold.
That means this change won’t affect most buyers, sellers, or investors. Instead, it’s focused on the ultra-premium segment - luxury homes in areas like:
Auckland’s Eastern Bays and Herne Bay
Queenstown’s lakefront and alpine estates
Coastal lifestyle regions such as Waiheke Island and the Bay of Islands
For developers and vendors in these areas, the policy could lead to:
Increased demand from offshore buyers
Greater pricing resilience at the top end
Renewed interest in prestige developments and trophy homes
Key Implications for Property Investors
At Thrive, we work with investors across a wide range of price points. While most of our clients operate well below the $5M mark, it’s important to understand the ripple effects this policy could have:
1. Adjacent Price Bands May See a Lift
Extra demand at the very top could influence valuations in nearby price brackets, especially in high-end suburbs where $3M–$5M homes sit alongside ultra-premium properties.
2. Developer Strategy May Shift
Premium developers may begin reorienting projects toward offshore buyers. This could tighten supply in select local markets and influence design, pricing, and marketing strategies.
3. Market Sentiment Could Change
Even symbolic policy shifts can influence investor confidence. The re-entry of foreign buyers, however limited, may signal a more open stance toward global capital in future reforms.
Thrive’s Perspective
This policy change is less about property access and more about economic strategy. The Government is using real estate as a lever to attract business investment, not to stimulate the housing market.
For everyday investors, the fundamentals remain unchanged:
Affordability: What can you comfortably afford based on your income and borrowing capacity?
Rental Demand: Is there strong tenant interest in your target area?
Capital Growth: Are you buying in a location with long-term upside?
These are the drivers that matter, and they’re the ones we help our clients navigate every day.
How Can We Help You?
We help Kiwis build wealth through property investment. Our advisors will take the time to understand your individual needs and recommend suitable investment properties to help you build wealth and set up your retirement.
What Does This Look Like?
We use a 3-step process:
We start with a Discovery Meeting where we learn about you, your goals, etc., and you learn more about us.
This is followed by a Strategy Meeting where we model your retirement plan, understand key investment concepts, and briefly touch on some investment choices.
Finally, an Asset Selection Meeting where we discuss investment options in more detail and make any recommended adjustments based on what we now know about you.
Who Are We Right For?
We help people make smart investment choices and set up their futures. From first-time investors to experienced investors, we can cater to a wide range of people and help set up their futures through research-based property investment.
How Much Does It Cost?
Our advice is free to you! If you choose to invest, we’re paid by the property developer. This developer-paid model allows us to provide no-obligation property investment advice in New Zealand, without charging clients directly.
What Do We Do, And What Don't We Do?
What We Do
We offer end-to-end New Zealand property investment advice, helping Kiwi investors grow wealth through smart, data-led decisions. Our focus is on quality new builds in strong locations, tailored to your goals, guided by a team that knows the NZ market inside out. What We Don’t Do
We don’t do KiwiSaver, shares, cryptocurrency, or broad financial planning. Thrive is not a generalist firm. We specialise in property investment in New Zealand because that’s where we deliver the most value. By staying focused, we cut through the noise and help our clients make confident, well-informed property investment decisions.
How Do I Start?
Start the process now by booking a time to talk with our advisor here.
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