A luxury mansion on Waiheke Island in northern New Zealand has recently drawn interest from wealthy Americans. With the New Zealand government allowing foreigners to buy dwellings for the first time in seven years, high-end listings appear to be gaining popularity.
According to Bloomberg on the 18th (local time), inquiries from wealthy Americans have been pouring in after a luxury property on Waiheke Island near Auckland, New Zealand, was listed for sale. The listing is a four-bedroom waterfront dwelling built on a 4.9-hectare (about 14,822-pyeong) site, and is said to include a vineyard and two islands.
Earlier, on the 13th, the New Zealand Parliament passed a bill allowing only "golden visa" holders to purchase or build one residential property, causing demand from foreign investors to surge. The golden visa is an investment immigration program to attract wealthy foreign investors, and the New Zealand government significantly eased the visa requirements in April.
Caleb Patterson, the real estate agent handling the listing, said, "Since the bill passed, we have received more than 100 inquiries from U.S. buyers," and noted, "Domestic buyers' interest has also grown, taking into account the influx of overseas demand." There is speculation that the listing price could surpass the highest-ever transaction price on Waiheke Island of 23.5 million New Zealand dollars.
However, the passage of the bill does not mean foreigners can buy all dwellings. Purchases are limited to dwellings priced at a minimum of 5 million New Zealand dollars (about 2.9 billion won). It is the first time in about seven years since 2018 that the New Zealand government has allowed "property shopping" by general foreign investors.
The move comes as the dwelling market, which surged during the COVID-19 pandemic, has entered a sharp correction phase. The average dwelling price in New Zealand has recently fallen about 15% from its 2021 peak, with declines exceeding 20% in major cities such as Auckland and Wellington. In response, the government aims to attract large sums of overseas capital to spur investment and consumption.
There is room for controversy. In New Zealand, there is widespread belief that past dwelling purchases by foreigners fueled price spikes, leading to strong backlash, and some areas are classified as "sensitive land," which could restrict sales.
Some also say the overall impact on the market will be limited. Dwellings with a transaction price above 5 million New Zealand dollars account for only about 0.4% of all listings, and the actual volume coming to market is only in the hundreds per year.
Kelvin Davidson, chief economist at property analytics firm CoreLogic, said, "It could affect ultra-high-end dwelling prices, but it will be hard for the effects to spill over into the mid- to low-priced dwelling market." Mark Harris, managing director at Sotheby's International Realty, also predicted, "The impact will be limited to properties of at least 10 million New Zealand dollars."