Prime Minister Christopher Luxon is tight-lipped on policy to allow foreign investors to purchase residential property here, but has followed New Zealand First’s Winston Peters in suggesting an announcement will be made before the end of the year.
He’s confirmed the comments Peters made to the Herald earlier this week were a fair representation of where things were at with the policy discussion.
The Herald revealed on Wednesday morning that Peters would announce a change this year. He has previously expressed interest in adjusting the ban but has now put a clear timeline on it.
Peters’ stance is that foreign investors pumping millions of dollars into the New Zealand economy should be able to purchase a house here, but foreigners who are not contributing to the economy should not.
Consultation is under way within NZ First on the appropriate investment threshold. Any proposal would need to go before the party’s coalition partners before being announced as policy, but that is anticipated to happen this year.
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”.
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.”
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.