What the OIA changes mean for property owners

The Government has announced reforms to the Overseas Investment Act (OIA) that will take effect from Friday, 6 March 2026, creating a new opportunity for eligible overseas investors to buy or build high-value residential property in New Zealand.

Under the changes, overseas buyers holding an Active Investor Plus Visa (AIP) will be able to apply for consent to purchase or build residential property valued at NZ$5 million or more. This marks an important shift for New Zealand’s luxury residential and premium land markets.

The Active Investor Plus Visa was introduced in 2022 to attract high-value international investors by offering a residency pathway in return for substantial investment in the New Zealand economy. While these investors have been actively committing capital to New Zealand, their ability to purchase residential property has, until now, been extremely limited.

Strong global interest from high-net-worth investors

Following updates to the visa settings on 1 April 2025, interest in the Active Investor Plus Visa has increased significantly. Since the changes:

• 532 applications have been submitted, representing 1,709 people (including families)
• 432 applications are in the Growth Category (minimum NZ$5 million investment)
• 100 applications are in the Balanced Category (minimum NZ$10 million investment)
• 159 applications have already been approved, with resident visas granted
• Total investment commitments are approximately NZ$926 million

Demand is coming from a broad range of international markets, led by:

• United States: 201 applications (581 people) – 37.8%
• China: 86 applications (283 people) – 16.2%
• Hong Kong: 69 applications (226 people) – 13.0%
• Germany: 37 applications (145 people) – 7.0%
• Singapore: 26 applications (97 people) – 4.9%
• Taiwan: 26 applications (84 people) – 4.9%

Collectively, applicants span 33 nationalities, highlighting strong and diversified global interest from well-capitalised buyers seeking a long-term connection to New Zealand.

What this means for property sellers

The reforms open a clearly defined, high-value segment of the residential market to overseas buyers. In practical terms:

• Eligible investors may apply to purchase completed homes valued at $5 million or more
• They may also purchase land, provided there is a firm commitment to build and the combined land and construction cost exceeds $5 million
• LINZ will implement a streamlined primary consent pathway. While the statutory timeframe for decisions under the new pathway will be 15 working days, LINZ aims to assess most applications within five working days

Bayleys expects the strongest buyer interest in locations that combine lifestyle appeal, scarcity, and premium positioning, including:

• Auckland’s top coastal and blue-chip suburbs
• Queenstown-Lakes District
• Bay of Islands and Northland luxury lifestyle properties
• Wānaka and Central Otago premium sites
• Select high-value lifestyle areas close to major cities These regions typically support properties that naturally meet the $5 million threshold.

Important limitations to be aware of

Only properties classified as residential (including lifestyle) will qualify. Certain types of land remain subject to stricter Overseas Investment Act controls, even at higher price points. These include:

• Sensitive land (such as property adjoining foreshore, waterways, or conservation areas)
• Larger lifestyle or rural holdings
• Sites with complex or multiple titles
• Some waterfront properties, depending on size and land classification In these cases, overseas buyers may still apply for consent, but approvals will fall outside the streamlined pathway and involve longer timeframes and additional conditions. Importantly, price alone does not determine eligibility.

A meaningful expansion, requiring specialist expertise

While the reforms do not fully reopen New Zealand’s residential property market to overseas buyers, they do materially expand the pool of qualified purchasers at the luxury end. For owners of high-value homes or premium development sites, this represents a meaningful increase in potential demand. Sellers considering bringing property to market, particularly homes valued above $5 million or land with committed build potential, should engage early with Bayleys specialists to ensure their property is correctly positioned for this emerging buyer group.

Bayleys is New Zealand’s leading luxury real estate company, selling more than twice as many $5 million-plus homes as any other agency. This market influence is supported by exceptional international reach through partnerships with McGrath in Australia and Knight Frank globally, world-class luxury marketing capability, and the country’s strongest network of elite agents, delivering complex, high-value transactions with confidence.

Disclaimer: This content is for general informational purposes only and does not constitute legal advice.