There have been more than 300 applications for the Active Investor Plus residency visa. The “golden” visa allows foreign investors residency if they own a home worth $5 million or more, effecting just one percent of the market. “So far this is potentially a $1.8 billion boost to the economy,” says Ryan Geddes, New Zealand MD for real estate giant Savills, which is beefing up its Australasian operations in anticipation.
In anticipation of increased growth at the higher end of the market Savills has been building up its Australasian operations with several key appointments, including a new CEO for New Zealand and Australia and New Zealand-based directors of asset management, commercial and industrial operations.
Savills says the picture is very positive in the New Zealand property market and sentiment is trending upward. “As interest rates continue to decline there are many more opportunities for people to buy and sell,” says New Zealand managing director Ryan Geddes.
“There has already been notable growth in the industrial and commercial categories in several regions, notably our Christchurch office, which is the largest it has ever been, in support of the post-rebuild economy in the Canterbury region.”
Savills New Zealand revenue has grown 20 percent a year since 2019, and its headcount has more than doubled in the past five years, with many appointments at the most senior levels of the business. “We are also expanding in Wellington and Queenstown, anticipating a comparable uptick in high-value residential as foreign buyers seize their opportunity to plant roots in sought-after areas,” says Geddes.
Active Investor Plus residency visa-holders now do not have to be in New Zealand for six months of a year, one criterion for buying a house under the Overseas Investment Act, but the ban on foreigners buying residential housing will remain, says Prime Minister Christopher Luxon.
“However, the Government wants to bring additional investment, skills, ideas and connections to New Zealand, and the Active Investor Plus residency visa allows that.
“This change navigates a path between those who do not want foreign ownership opened up and the desire to attract high-net-worth investors by deepening their connection to our country to help.
“It offers residency to a migrant who invests a minimum of $5 million to help grow the economy, passes a good character test and has acceptable health,” Luxon says.
Attractive offer
“Many potential residential visa holders will be now looking closely at which New Zealand cities are considered great places to move to and which offer a great quality of life and enough choice of the ‘right’ kind of property to qualify for purchase,” says Geddes.
“In those respects, Auckland, which vaulted on to the Savills Executive Nomads list this year to number nine, and Queenstown would be prime picks.
“Auckland has the best air connectivity as the largest gateway to and from the rest of the world and has incredible beaches, parks, culture and dining.
“Queenstown is a true international town with a lot of foreign buyers and residents already. It is in one of the most beautiful and pristine natural environments in the world, with year-round outdoor adventure, wineries and lifestyle on your doorstep” says Geddes.
Build sector and rental benefits
Most other New Zealand cities have relatively fewer available properties at that $5 million plus price point but the opportunity to buy land and build could change that, which would be an excellent outcome for the construction and property development sector. “It could add another tier of quality homes that we don’t yet have in every city and town,” says Geddes.
“It’s also important to think not just about the opportunities to buy high-value property but the higher-end rental market, which is strong in Auckland and Queenstown.
“This is a factor for foreign buyers who have heard how good the quality of life is compared to many global cities and who might want to rent and get to know a city before deciding where or what to buy — whether standalone home, luxury apartment, lifestyle block or something else,” he says.
About Savills
Operating in more than 70 countries with 40,000 professionals, Savills combines global research with local knowledge to help investors, developers, and occupiers navigate a complex property market.
In anticipation of more growth at the higher end of the Australasian market, Savills is boosting its national offices with several key appointments, including Paul Roberts as Chief Executive Officer for New Zealand and Australia. He brings strong commercial expertise, having led transactions worth hundreds of millions of dollars in major markets.
Ben Schubert has been appointed National Head of Capital Transactions and Advisory and brings more than 20 years’ experience, working on deals exceeding $15 billion across Australia and the Asia Pacific.
The expansion is supported by local directors with deep market knowledge: James Copson with global asset management experience including data centres; Merv Davies with more than 30 years in commercial sales in Christchurch and the South Island and Alex Hopkinson, who strengthens industrial sales in Auckland, backed by experience at international firms.
