New Zealand is rolling out the red carpet for wealthy foreigners, partially lifting a 2018 ban on overseas home buyers to allow those with “golden visas” to purchase high-value properties worth at least NZD 5 million (USD 3 million), Prime Minister Christopher Luxon announced Monday.

The policy tweak targets rich investors holding Active Investor Plus visas, reintroduced in April, which grant residency to those investing NZD 5 million in local businesses over three years or NZD 10 million over five years in safer investments. Previously, these visa holders couldn’t buy homes unless they lived in New Zealand for six months annually—a requirement now scrapped.

Luxon pitched the change as a win for economic growth, arguing it will lure high-net-worth individuals to a “safe haven” in a turbulent world. “This will create jobs and boost investment,” he told reporters in Auckland, noting that applications for these visas could bring up to NZD 1.8 billion into the economy. With only about 10,000 homes—less than 1% of New Zealand’s housing stock—eligible due to the price threshold, Luxon insists the move won’t inflate property prices, which have cooled since their 2022 peak.

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However, critics are sounding the alarm. Labour’s housing spokesperson, Kieran McAnulty, slammed the decision, saying it prioritises wealthy foreigners over struggling Kiwis. “With homelessness and unemployment rising, and families unable to afford groceries, this just makes it harder for locals to buy homes,” he said.

Government data shows over 300 visa applications, representing around 1,000 people, with nearly 40% from the United States. Most eligible properties are in Auckland (80%) or Queenstown (10%), a hotspot for wealthy foreigners seeking luxury retreats or rumoured “doomsday bunkers”.

New Zealand’s housing market remains under pressure, with the average home price at NZD 767,250 in July and Auckland’s at NZD 975,000, according to the Real Estate Institute. The 2018 ban was enacted amid a housing affordability crisis, with foreigners—then buying about 3% of homes nationally and 22% in Auckland—blamed for driving up prices.

Luxon’s centre-right government, which promised to reverse the ban during the 2023 election, settled on this compromise after coalition talks. Exceptions for Australians and Singaporeans remain due to trade agreements. As New Zealand markets itself as a haven for the global elite, the debate intensifies: will this spark economic growth or deepen the housing divide?

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