Australia’s Property Ban Creates Opportunity for Foreign Buyer Investment in New Zealand
A Window Opens for Offshore Capital as NZ Lags Behind in Policy Reform
An Australian ban on foreign buyers purchasing residential property has created a rare opportunity for foreign buyer investment in New Zealand, according to a leading property expert.
Under new legislation introduced by the Australian Government, offshore investors will be barred from purchasing established residential dwellings from 1 April 2025 to 31 March 2027. The move, aimed at reducing housing pressure, could redirect billions of dollars in offshore capital across the Tasman.
Caleb Paterson, founder of Paterson Luxury Real Estate, says this shift opens a significant window for New Zealand to attract global capital if policymakers act quickly.
“New Zealand offers political stability, natural beauty, and an attractive lifestyle,” says Paterson. “International investors are looking for more than a return. They want a secure base for their families and long-term ventures. Without policy clarity, they will look elsewhere.”
Market Paralysis as Other Countries Welcome Investment
Paterson says a lack of direction on overseas investment rules is already causing New Zealand to miss out on capital inflows. “We have seen deals fall over because investors could not secure a home as a base. Meanwhile, countries like the UAE are embracing investment and experiencing strong economic growth.”
He reports a rise in interest from high-net-worth individuals in the United States, United Kingdom, Canada, and China. “Many are ready to invest not just in luxury real estate but in business, development, and the technology sector. They are simply waiting for a green light.”
Stalled Listings and Missed Opportunities
In 2024, around 40 percent of luxury property listings in New Zealand were withdrawn from the market due to regulatory uncertainty. “We are not just seeing unsold houses. There are developers who have delayed $70 million projects, syndicates with billions ready to deploy, and expats blocked from returning home.”
He says a lack of access to housing has also obstructed wider business activity. “A client trying to introduce a major coffee roasting brand had to abandon plans because they could not secure a residence first. That is not just a lost property sale, it is lost economic activity.”
A Chance to Restart the Economy
Paterson stresses that foreign buyer investment in New Zealand has broader economic implications. “These investors are not just buying homes. They are creating businesses, jobs, and commercial growth. What we are blocking is not just a buyer, but a potential employer or investor.”
He notes that even affluent New Zealanders are affected. “This is not about pity for someone in a $10 million home. When they cannot sell, builders do not get work, tradespeople lose income, and the money stops circulating.”
Clear Policy Could Unleash Demand
Paterson is calling for the Government to introduce a clear minimum investment threshold for offshore residential buyers. “If they did that, we would see a surge in listings and transactions. Volume would return to the market before prices moved, and that is exactly what we need now.”
He says international buyers are unlikely to drive up house prices immediately. “There is a backlog of unsold luxury stock. It could take over a year to clear it. But the economic benefit would be seen immediately, from agent commissions to construction contracts.”
Global Alternatives Are Stealing the Advantage
New Zealand’s appeal is being undercut by countries with more stable and transparent policies. “I have clients ready to invest here who are now looking to Dubai because the process is clear,” says Paterson. “Every week of inaction means another opportunity lost.”
He adds that overseas tax changes, such as Canada’s proposed wealth tax, and political volatility in the United States are increasing New Zealand’s appeal. “But appeal alone is not enough. We have to match it with action.”
Why the Regional Economy Matters
Paterson points out that the impact goes beyond Auckland and Queenstown. “In places like Northland, Central Otago, and the Bay of Plenty, even a few major foreign buyer investments in New Zealand could mean hundreds of homes, local jobs, and economic momentum.”
He says he is in regular contact with high-net-worth individuals who are interested in New Zealand, but unsure if they are welcome. “We need to send a clear message that we are open for business.”
About Impact PR
This article was prepared by Impact PR, a leading New Zealand public relations agency specialising in property PR. With a strong track record in media relations, corporate communications, and investment storytelling, Impact PR helps clients shape public narratives that support commercial outcomes.
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