New Zealand Eases Housing Ban for Wealthy Investors

New Zealand is relaxing a ban on foreign home purchases for wealthy investors, a decision partly reversing restrictions you placed in 2018. The policy aims to lure foreign investment without significantly impacting local housing markets, drawing criticism from opposition parties focused on domestic affordability issues.

In a significant policy shift, New Zealand's Prime Minister Christopher Luxon announced the relaxation of a ban on foreign home purchases. This change will allow select wealthy international investors to buy a single high-value residential property.

The move partially reverses a 2018 prohibition aimed at controlling soaring house prices due to property speculation. Luxon's initiative hopes to attract affluent foreigners and stimulate economic growth during a recession by issuing residency 'golden visas' for high-value investments.

Despite concerns voiced by opposition parties about exacerbating domestic housing affordability, Luxon assures that the relaxed policy will not significantly affect house prices. The strategic decision balances attracting foreign capital while managing domestic housing concerns.

(With inputs from agencies.)