New Rules for Investor Visa Holders: What It Means for Wanaka Property

The New Zealand Government has passed a targeted change to the overseas investment rules that opens the door for certain investor visa holders to buy or build a high-value home here, under conditions. This change is designed to attract international capital and deepen investor engagement in local communities without undermining protections for New Zealand’s broader housing market.

Let’s break down what’s happening, who it applies to, and what it could mean locally.

What’s Changed?

Under the Overseas Investment Act 2005, most overseas persons are restricted from buying residential land in New Zealand. The Government has now added a new consent pathway for certain investor visa holders. This pathway lets eligible investors apply for consent to buy or build one high-value residential property, while the general restrictions remain in place.

For readers in Wanaka and Queenstown, where premium properties are an important part of the local market, this is highly relevant.

Who Can Use the New Pathway?

The new rule applies to people who hold one of these visas:

Active Investor Plus (AIP)

• Investor 1
• Investor 2

The $5 Million Threshold

To qualify under the new pathway:

• The purchase price of the property must be at least NZ$5 million; or
• The combined cost of buying land plus building a new home must exceed NZ$5 million.

This threshold means the pathway is aimed squarely at the top end of the market.

Buying or Building

Eligible investors can either:

• Buy an existing high-value residential property, or
• Buy land and build a new home

Where a build is involved, consent will be granted with conditions such as:

• A requirement that the house is built;
• Reporting to the Overseas Investment Office on progress and cost;
• A potential requirement to sell the land if the build isn’t completed or the combined land and build costs fall below the threshold.

When Does It Take Effect?

The Government has passed the law change, and it is confirmed that these new provisions will come into effect in early 2026. Until then, current overseas investment rules continue to apply. 

You can already enter into contracts conditional on obtaining Overseas Investment Office consent once the rules are in force.

How You Can Use the Property

Once consent is granted:

The property can be lived in as a main home;

• Used as a holiday residence; or
• Used to operate a business. 

The above are subject to compliance with other laws, including local planning laws. 

There are no use-restrictions under the Overseas Investment Act. However, buying a home this way does not count toward the qualifying investment requirement for the visa.

Not All Land Is Eligible

The pathway applies only to residential land that is not otherwise sensitive under the Overseas Investment Act. Residential land means land that is categorised as ‘residential’ or ‘lifestyle’ for the purposes of the district valuation roll. 

There are other types of sensitive land that are not eligible for this consent pathway, including non-urban (rural) land larger than 5 hectares, some land adjoining the seabed or foreshore, and some land on islands.

What This Means for Wanaka

Wanaka’s premium property market is likely to be among the few places in New Zealand where this pathway might see interest, particularly for bespoke homes, lakefront properties and architecturally distinctive builds that comfortably exceed NZ$5 million.

This development doesn’t open up the wider housing market to overseas buyers, but it does create a new, controlled opportunity at the top tier of the market. It may support activity in luxury boutique development and bespoke residential projects 

In Summary

• A new overseas investment pathway allows certain investor visa holders to buy or build one residential property worth NZ$5 million or more.
• This change comes into effect in early 2026. 
• Consent is required and if granted, will be subject to conditions.
• The policy aims to attract high-net-worth investors while protecting housing accessibility for most New Zealanders.

For Wanaka’s high-end property market, this change may bring new interest from international buyers who are looking to invest in New Zealand.

For those looking to invest in New Zealand and utilise this new consent pathway, it is important to take legal advice on your specific circumstances. 

The law comes into effect on 6 March 2026.

Caitlin Addison

Solicitor

[email protected]

7 Dunmore Street

Wānaka