The Government’s change to foreign investment settings allowing wealthy overseas people to purchase homes in New Zealand is unlikely to go through the usual parliamentary process.
It would mean the adjustment won’t be subject to public submissions at a select committee, which is normally a key opportunity for New Zealanders to formally provide their views on legislation sitting before politicians.
Associate Finance Minister David Seymour, who has responsibility for overseas investment legislation, said after Monday’s announcement that, “we are going to get it done this year”.
“We have a bill currently before select committee. It will come back. We will whip these changes in. We will pass it. It will be law before New Year’s Eve,” he said.
“I think getting it done that quickly is very attractive considering where we want to go with trying to grow the economy, try and get more investment in.”
Asked on Tuesday about that decision meaning there won’t be an opportunity for public submissions on the changes, Seymour gave a brief response.
“We are simply removing a restriction on New Zealanders’ freedom. This should not be controversial or require paralysis by analysis,” he told the Herald.
His office confirmed that “restriction on New Zealanders’ freedom” was their ability to sell their homes to wealthy international buyers.
Labour’s housing spokesman Kieran McAnulty said; “They’re cowards for not giving Kiwis the chance to have their say on this”.
“Just like with the pay equity changes, they don’t have the guts to front up to New Zealanders. This is a change that will make buying a house even harder for Kiwi families.”
He said the Government not seeing this as being controversial “tells you everything you need to know about them”.
“They’re rolling out the red carpet for wealthy foreigners, while driving up house prices for New Zealanders.”
Prime Minister Christopher Luxon said he was “absolutely” comfortable with the lack of public submissions on the change.
“Anything that encourages investment, that creates jobs and higher-incomes, and ultimately sets Kiwi kids up for a future with higher-paying jobs than what they have today, that’s what I am up for.”
The changes also haven’t been subject to a Regulatory Impact Statement (RIS). These usually summarise officials’ views of the costs and benefits of a policy. Treasury told the Herald there is “no RIS on the changes announced yesterday”.
Instead of being its own separate piece of legislation, Seymour’s office said the change is likely to be tacked on to his Overseas Investment (National Interest Test and Other Matters) Amendment Bill.
It intends to streamline processes to get foreign investment into New Zealand.
That bill passed its first reading in the House in June before heading to the Finance and Expenditure Select Committee. While the committee is yet to report back, public submissions closed in late July.
Amendments can be made to bills after they have been introduced. For example, select committees can recommend the House amend a piece of legislation after their scrutiny of it. MPs can put forward amendments during what is called the “Committee of Whole House”.
Under the changes announced by the Government, wealthy foreign investors holding the Active Investor Plus residency visa will be able to purchase or build one house valued at $5 million or more.
To get the visa in the first place, they have to invest at least $5 million into the economy.
The Prime Minister said he believed this change navigated the path between those who do not want foreign ownership opened up and the desire to attract wealthy investors “deepening their connection to our country to help grow the economy”.
It’s expected to affect less than 1% of the housing market, or about 10,000 homes, according to Luxon. He said targeting the top of the market meant it wouldn’t drive up property prices and the Government wanted to see affordable housing.
Nick Goodall, property commentator for Cotality, said the change would impact only a small percentage of the market and wasn’t likely to have much overall impact. He said the impact would likely have been different if the allowed house price was lower.
Seymour has always been supportive of allowing more foreigners to buy property here and opposed the previous Government’s ban.
“We can’t afford to turn our nose up to friends around the world who want to bring their money and know-how to this country.
“If they want to buy a home that is not going to affect first-home buyers at all, I think we should see that as a massive win-win and a step forward for New Zealand and for the Government,” he said on Monday.
“I am responsible for the Overseas Investment Amendment Bill and I think it’s fair to say I have been waiting for this development eagerly for some time and I can’t wait to bring it into the House in November.”
There have been 308 applications for the Active Investor Plus Visa.
Many applicants are from the United States, China and Hong Kong. The applications received amount to a potential total minimum investment of about $1.8 billion.
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.