Foreign millionaires are increasingly looking to buy NZ property, but what's driving their interest in New Zealand? In our recent conversation with Alex Martelli, founder of Martelli Buyer's Agents, we explore why wealthy overseas buyers are choosing New Zealand, how investor visa changes are influencing demand, and what it could mean for the wider property market.
Why Are Foreign Millionaires Buying NZ Property?
New Zealand is attracting growing interest from wealthy overseas buyers, with lifestyle, geopolitical uncertainty and investment opportunities all influencing their decisions.
For many foreign millionaires, buying NZ property isn’t simply about securing a holiday home. It’s about relocating their families, businesses and investments to a country they see as offering greater stability and a better quality of life.
Alex Martelli, founder of Martelli Buyer’s Agents, has seen a noticeable shift in the type of clients seeking property in New Zealand.
Last year, approximately 80% of her clients were local Kiwi families. This year, that split has moved closer to 50/50, with a significant increase in overseas buyers, including returning New Zealanders and families relocating from other countries.
Much of the interest is coming from the United States, Germany, the United Kingdom, Australia and other parts of Europe and Asia.
The reasons for relocating vary, but several common themes are emerging.
For some European families, concerns about geopolitical instability are influencing their decision to move further away from international conflict. Others are seeking a more relaxed lifestyle, better work-life balance and different opportunities for their children.
American buyers have also expressed concerns about the political environment in the United States, with some choosing to spend several years in New Zealand to see whether it suits their families.
For these buyers, New Zealand’s geographical isolation is increasingly being viewed as an advantage rather than a disadvantage.
How Are Investor Visas Influencing NZ Property Demand?
Changes to New Zealand’s investor visa settings have created new opportunities for wealthy overseas investors to purchase property.
The Active Investor Plus (AIP) visa provides a pathway for eligible investors to invest in New Zealand, while a separate property provision allows qualifying investors to purchase homes valued above $5 million for part-time use.
However, the distinction between these pathways is important.
According to Alex, only a handful of buyers she’s encountered are using the $5 million property provision to secure a home they can occupy without living in New Zealand full-time.
The majority of her international clients are relocating through the Active Investor Plus pathway and purchasing family homes, often valued between $3 million and $5 million.
These purchases can still require approval from the Overseas Investment Office, and there are restrictions on the types of properties overseas buyers can purchase.
These include:
- Sensitive land: Certain protected or sensitive properties may be restricted.
- Coastal properties: Some coastal land is subject to additional restrictions.
- Large landholdings: Properties exceeding five hectares can require additional approval.
- Strategically sensitive locations: Properties near certain important infrastructure or locations may require further scrutiny.
Alex shared an example of an Australian client purchasing a property slightly larger than five hectares. Although Australian buyers generally have fewer restrictions when purchasing New Zealand property, the land size meant additional approval was required.
For overseas buyers unfamiliar with New Zealand’s property rules, understanding these requirements can be one of the more complicated parts of purchasing a home.
Why Auckland and Queenstown Are Attracting Wealthy Buyers
While Auckland and Queenstown are both attracting international interest, buyers are often drawn to each location for different reasons.
Auckland: Education, Business and Lifestyle
For wealthy families relocating to New Zealand, Auckland is frequently the preferred destination.
Many buyers have school-aged children and want access to education, while others are looking to establish or expand their business interests.
Auckland’s position as New Zealand’s financial hub is particularly appealing to entrepreneurs, investors and venture capitalists who want to remain connected to business opportunities.
Lifestyle is also an important consideration.
Alex shared the example of an international buyer who had lived in several countries but always wanted to settle in New Zealand. Her ideal lifestyle involved golf, cycling and living in an inner-city suburb such as Ponsonby or Grey Lynn.
Queenstown: Lifestyle and Retirement
Queenstown attracts a different type of buyer, often those prioritising lifestyle properties, outdoor activities and retirement.
For overseas families who enjoy skiing, mountain biking and spending time on the water, the South Island offers a compelling lifestyle.
Alex has also seen interest from Australian buyers looking to purchase land or property in Queenstown as part of their longer-term retirement plans.
Rather than competing for the same properties, these buyers often have very different requirements depending on whether they’re relocating for business, family or lifestyle reasons.
Is Now an Attractive Time for Foreign Buyers to Enter the NZ Property Market?
Beyond lifestyle and geopolitical considerations, New Zealand’s current property market conditions are also influencing overseas demand.
A relatively weak New Zealand dollar, combined with a property market that has experienced limited growth, is making New Zealand property appear more attractive to buyers holding foreign currencies.
For international purchasers, the combination can create an opportunity to secure a property at a more favourable price than they might have expected several years ago.
Alex has observed overseas buyers considering both the exchange rate and the state of the property market when deciding whether to purchase.
However, understanding what represents good value can be challenging.
A property in Herne Bay might command $10 million despite sitting on approximately 500 square metres of land, while a larger property in Epsom could be valued at $6 million.
For buyers unfamiliar with Auckland’s suburbs, land values and property characteristics, these differences can be difficult to understand.
Interestingly, Alex has found that wealthy international buyers aren’t necessarily focused on spending exactly $5 million.
Instead, their priorities tend to centre on finding the right property, in the right location, at a price that reflects its quality and value.
Will Foreign Millionaires Push Up NZ House Prices?
One of the biggest concerns surrounding foreign investment in New Zealand property is whether wealthy overseas buyers could drive up house prices and make homeownership less affordable for locals.
However, the number of homes valued above $5 million represents a very small proportion of New Zealand’s overall housing market.
The figures highlighted in the episode show:
- New Zealand: Approximately 0.53% of homes are valued above $5 million.
- Auckland: Approximately 1.25% of homes are valued above $5 million.
- Queenstown: Approximately 3.3% of homes are valued above $5 million.
These figures suggest that buyers targeting properties above the $5 million threshold are operating within a relatively small segment of the market, rather than directly competing with typical first-home buyers.
Alex also notes that many wealthy international purchasers are searching for distinctive, high-end properties rather than conventional family homes.
At the same time, New Zealand’s ageing population is contributing to an increase in larger, more expensive homes coming onto the market.
Properties valued between $4 million and $7 million are increasingly being listed as long-term homeowners consider selling.
For some owners, these properties represent a significant part of their retirement wealth. However, finding buyers willing and able to purchase homes at these price points can be challenging.
The gap between household earnings and luxury property values has become substantial, particularly for families looking to upgrade from a $5 million home to something worth $7 million, $8 million or more.
While increased international demand could create more competition in the luxury market, it could also provide a larger pool of potential purchasers for properties that have traditionally been difficult to sell.
The extent to which foreign buyers influence property prices will depend on how demand develops over time.
Could Wealthy Migrants Benefit the Wider New Zealand Economy?
The potential economic impact of wealthy migrants extends beyond the properties they purchase.
According to Alex, many international buyers are bringing considerably more than the funds required to purchase a home.
They’re relocating businesses, investing in local opportunities and engaging New Zealand professionals and service providers.
This can create demand across a wide range of industries, including financial advice, professional services, healthcare and local businesses.
Alex also shared the example of a wealthy Australian family considering relocating to Auckland.
While their property budget is substantial, the family’s interest extends to exploring business opportunities in New Zealand.
This highlights why the economic benefits of attracting wealthy migrants shouldn’t necessarily be measured by property transactions alone.
The longer-term impact could include additional business investment, employment opportunities and spending throughout the economy.
However, it’s still early to determine exactly how significant those benefits might be.
As more investors relocate and establish themselves in New Zealand, the wider economic effects of these policy changes should become clearer over the coming years.
Why Overseas Buyers Are Turning to Buyer's Agents
Purchasing property in an unfamiliar country introduces challenges that go well beyond finding a home online.
Overseas buyers need to understand local property values, neighbourhoods, planning rules and the potential risks associated with individual properties.
Alex notes that buyer’s agents are already widely used in overseas markets, whereas the service is still relatively new in New Zealand.
For many wealthy international purchasers, engaging someone to represent their interests throughout the buying process is simply standard practice.
A buyer’s agent can help purchasers navigate considerations such as:
- Understanding whether a property’s asking price reflects local market values.
- Assessing zoning and potential future changes to neighbouring properties.
- Identifying risks associated with erosion, liquefaction and other property characteristics.
- Understanding how location, land size and property quality influence value.
- Navigating the complexities of purchasing property in an unfamiliar market.
These considerations are particularly important for buyers who may have limited knowledge of New Zealand or, in some cases, have never visited the country before purchasing.
For both international and local buyers, understanding the property they’re purchasing and the price they’re paying remains an important part of making a well-informed decision.
Key Takeaways
- Foreign millionaires are increasingly interested in NZ property. Lifestyle, geopolitical uncertainty, business opportunities and favourable market conditions are influencing overseas demand.
- Most wealthy migrants aren’t simply buying holiday homes. Many are relocating their families, businesses and investments to New Zealand.
- Investor visa changes are creating new opportunities. However, overseas buyers still face restrictions around certain properties, sensitive land and large landholdings.
- Auckland and Queenstown attract different buyers. Auckland appeals to families and business-focused migrants, while Queenstown is particularly attractive to lifestyle and retirement buyers.
- The luxury market represents a small proportion of New Zealand housing. Only approximately 0.53% of New Zealand homes are valued above $5 million.
- The economic benefits could extend beyond property. Wealthy migrants may contribute through business investment, employment and spending across local industries.
- Understanding property values remains essential. Overseas buyers need to navigate local market conditions, property risks and purchasing restrictions before making significant investments.
Next Steps
Thinking about buying your next home? Get in touch with Martelli Buyer’s Agents here.
If you’d like to watch more, check out this episode below.
For a no obligation discussion to see how we can help you on the path to wealth, please contact us.
Disclaimer:
The information in this article is general information only, is provided free of charge and does not constitute professional advice. We try to keep the information up to date. However, to the fullest extent permitted by law, we disclaim all warranties, express or implied, in relation to this article – including (without limitation) warranties as to accuracy, completeness and fitness for any particular purpose. Please seek independent advice before acting on any information in this article.
