See also: Buying and Selling Residential Property | Subdivisions | Commercial Sales and Purchases

What changed under the Overseas Investment Act on 6 March 2026?

The Overseas Investment (National Interest Test and Other Matters) Amendment Act came into force on 6 March 2026, creating a new targeted consent pathway that allows holders of Active Investor Plus (AIP), Investor 1, and Investor 2 resident visas to purchase or build one residential property in New Zealand valued at more than NZ$5 million, without first meeting the “ordinarily resident” requirement.

This is a significant but deliberately narrow change to New Zealand’s foreign buyer rules. The broader prohibition on overseas persons purchasing existing New Zealand homes remains fully in force. This new pathway applies only to a specific group of committed investor migrants and only at the top end of the market.

“If a migrant invests a minimum of $5 million to help grow the economy, passes a good character test, and has acceptable health, they will now be able to buy or build a home.”

— Immigration Minister Erica Stanford, December 2025

Approximately 491 AIP visa applications had been received as of December 2025, covering 1,571 people and representing a potential minimum investment of NZ$2.91 billion. The Government expects the residential property pathway to strengthen New Zealand’s attractiveness as a destination for high-net-worth investor migrants.

What are the conditions of the new pathway?

The exemption is precise. All of the following conditions must be met.

• 1. Visa status: The buyer must hold an AIP, Investor 1, or Investor 2 resident visa at the time of purchase.
• 2. Price floor: The purchase price must exceed NZ$5 million including GST. For new builds, the combined purchase price of land plus construction costs must exceed NZ$5 million. Rebates paid back to the vendor or similar arrangements do not count toward the threshold.
• 3. Residential land only: The property must be categorised as “residential” or “lifestyle” on the district valuation roll. It cannot be otherwise sensitive land. This excludes rural land over five hectares, land adjoining the foreshore or seabed, and land on certain islands including most of Waiheke Island. Lifestyle blocks in areas such as Karaka and Clevedon require specific attention: if the land is non-urban and exceeds five hectares, it may be classified as otherwise sensitive land and fall outside the new pathway entirely, even if it appears on the district valuation roll as lifestyle. Legal review of the specific title is required before any agreement is signed.
• 4. OIO consent required: The buyer must obtain consent from the Overseas Investment Office before purchasing. Any sale and purchase agreement must be made conditional on OIO consent being granted. Signing an unconditional agreement before consent is a serious legal error that can result in penalties and forced divestment.
• 5. One property only: Only one residential property may be owned under this pathway at any time. To purchase a replacement property, the previously consented property must first be sold.
• 6. No rental portfolio use: This pathway cannot be used to build a local investment portfolio. The residential property is not treated as an acceptable qualifying investment for AIP visa purposes.

What is the OIO consent process and what does it cost?

Despite consent still being required, the new pathway is designed to be fast and low cost compared to standard overseas investment applications.

The statutory timeframe is 15 working days, but LINZ has committed to assessing most applications under the new pathway within five working days. The OIO will assess that the purchase is not contrary to New Zealand’s national interest, though a standard residential purchase is unlikely to raise national interest concerns.

Conditions of consent are issued with each approval. For new builds, these typically include reporting requirements on the construction process and costs, and an obligation to sell the property if the build is not completed or if total costs fall short of NZ$5 million.

Can the property be purchased through a trust or company?

Yes, under certain conditions. The residential land can be acquired through a New Zealand company or trust, but there are limits on who can be involved in that structure. Given the complexity of structuring an overseas investment through a trust or company, expert legal advice before signing anything is essential. Under the Overseas Investment Act 2005, a company or trust acquiring residential land under this pathway must not have more than 25 percent of its ownership or control held by overseas persons who do not themselves qualify under the investor visa pathway. Structures involving multiple family members, corporate trustees, or offshore holding entities require careful review against this threshold before any acquisition proceeds.

Rice Craig advises on the full legal process for high-value property acquisitions, from OIO consent application through to settlement and title registration via LINZ Landonline.

What does this mean for South Auckland and the wider Auckland region?

The NZ$5 million threshold is deliberately high. Government analysis confirms that only approximately 1% of New Zealand homes exceed this value. In practical terms, qualifying properties in the Auckland region are concentrated in premium suburbs and in lifestyle blocks and new build developments at the upper end of the market.

In the South Auckland and Franklin areas, relevant properties include large lifestyle blocks in Karaka and Clevedon, premium waterfront or rural residential titles, and high-specification new builds where land and construction costs combined exceed the threshold. For landowners in these areas, the 2026 changes may expand the pool of potential buyers for premium properties.

“This is a specialised area of law that sits at the intersection of immigration, overseas investment, and property. The OIO process may be faster than it was, but the legal requirements around conditional agreements, consent conditions, trust structures, and reporting obligations remain substantial. Getting this wrong can mean penalties and forced divestment of a multimillion dollar asset.”

— Scott Hunter, Partner, Rice Craig Barristers and Solicitors

Ready to purchase high-value property in New Zealand as an investor visa holder?

Contact Scott Hunter and the Rice Craig property law team for specialist advice on OIO consent applications, conditional agreements, and settlement.

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Frequently Asked Questions

Does the foreign buyer ban still apply after 6 March 2026?

Yes. The broad prohibition on overseas persons purchasing existing New Zealand homes remains fully in force. The 6 March 2026 changes create only a narrow exception for AIP, Investor 1, and Investor 2 visa holders purchasing properties above NZ$5 million. All other overseas buyers remain subject to the same restrictions as before.

Can I sign a sale and purchase agreement before OIO consent is granted?

Yes, but the agreement must be made conditional on OIO consent being obtained. Signing an unconditional agreement before consent is granted is an unlawful act under the Overseas Investment Act 2005 and can result in penalties and a requirement to divest the property. If you are purchasing at auction, you must obtain pre-approval before bidding.

Can I use this pathway to buy a rental investment property?

No. The pathway allows purchase of one residential property for personal or family use, as a holiday home, or to operate a business subject to local planning rules. It cannot be used to build a local rental portfolio, and the property itself does not count as a qualifying investment for AIP visa purposes.

Can I buy a lifestyle block in Karaka or Clevedon under this pathway?

Possibly. Lifestyle blocks are classified as residential land for Overseas Investment Act purposes if they appear on the district valuation roll as “lifestyle.” However, if the land is non-urban and exceeds five hectares, it may be classified as otherwise sensitive land and fall outside the new pathway. Legal review of the specific title is required before any agreement is signed.

What happens if I want to sell the property and buy a different one?

You may purchase a replacement property under the same pathway, but the previously consented property must be sold first. Conditions of consent may also impose specific reporting obligations when the property is sold.

Can I buy New Zealand residential property through a trust or company as an overseas investor?

Yes, under certain conditions. A New Zealand company or trust can acquire residential land under the investor visa pathway, but under the Overseas Investment Act 2005 no more than 25 percent of the ownership or control of that entity can be held by overseas persons who do not themselves qualify under the pathway. Structures involving multiple family members, corporate trustees, or offshore holding entities require careful legal review against this threshold before any agreement is signed.

This article is intended for general information purposes only and does not constitute legal advice. For advice specific to your circumstances, please contact the team at Rice Craig.

About the Author
Scott Hunter is a Partner at Rice Craig Barristers and Solicitors, specialising in commercial property, overseas investment, and dispute resolution across South Auckland. He is a Harvard-trained mediator and an associate member of AMINZ.

Authoritative Resources

LINZ: Overseas Investment Act Reform

LINZ: Qualifying Investor Visa Holder Guidance

Immigration New Zealand: Active Investor Plus Visa

Ministry of Housing and Urban Development: Overseas Investment