4:17 pm today

NZ First signals change to foreign buyers ban could be announced this year

NZ First leader Winston Peters helped introduce the ban in 2018. Photo: RNZ / Samuel Rillstone

NZ First leader Winston Peters says he expects an announcement “soon” clearing the way for wealthy foreign investors to buy high-value houses in New Zealand.

But he insists the foreign buyers ban – which prevents most foreigners from purchasing existing houses – will remain in place, unchanged.

“We’re talking about investment. We’re changing those rules and what goes with them. You have to be patient – and we’ll tell you what the details are,” Peters told reporters on Wednesday.

“But the Foreign Buyers Act is not changing.”

During coalition negotiations, NZ First blocked National’s proposal to allow foreigners to buy houses worth more than $2 million, contingent on a 15 percent tax.

But Peters – who helped introduce the ban in 2018 as part of the Labour NZ First coalition – later said he was open to revisiting the rules “for the right investor”.

A spokesperson on Wednesday said discussions were ongoing about the appropriate investment threshold but suggested it would be “substantial”.

“New Zealand First is pursuing consultation on the matter and is looking at the government being able to make an announcement by the end of the year.”

Any proposed changes would need to create jobs and benefit the wider economy without disrupting the housing market, the spokesperson said.

Speaking later at Parliament, Peters told reporters they would not have to wait very long for an announcement.

“I’m not the one totally in control of the answer, but I would imagine by the end of 2025,” he said.

Peters repeatedly stated that “the foreign buyers ban will remain” but said investment rules could be changed to allow those investing “millions of dollars” to buy a house at a certain cost – “and that cost is not $2 million”.

“We’re talking about investors. They’re bringing billions to this economy,” he said. “They’re not buyers.”

Back in October, Peters told NewstalkZB he would consider changes for the “right person with the right investment” – but it would need to be far more than “a lousy $20 million”.

Addressing reporters on Wednesday, Prime Minister Christopher Luxon confirmed the timeline outlined by Peters but declined to shed any light on the “ongoing coalition negotiations”.

“When we’re ready to talk about it, we will,” Luxon said. “You’ve heard what Winston said… and that’s a fair reflection of where things are at.”

Luxon has previously conceded National set its $2m threshold “too low” and suggested $5m or $6m would be more reasonable.

ACT leader and associate finance minister David Seymour – who’s responsible for the Overseas Investment Act – told reporters he would support any progress on the issue.

“I’d be there with bells on, because I think allowing our friends around the world to come to our country, bring their money and live here is generally – there’s exceptions – but generally a win-win for New Zealand.”