What the Overseas Investment Act Means for Property Buyers in NZ

The Overseas Investment Act 2005 (OIA) sets strict rules on who can purchase residential and sensitive land — and for most non-residents, it’s heavily restricted. The Act is enforced by the Overseas Investment Office (OIO), which oversees all foreign investment approvals. While the Government is currently reforming parts of the regime in 2025, the core residential land restrictions remain firmly in place.

If you’re planning to buy property in New Zealand from overseas, here’s what you need to know.

Core Concepts & Definitions

What Is an “Overseas Person”?

Under the OIA, an overseas person includes anyone who is not a New Zealand citizen, permanent resident, or “ordinarily resident” in NZ. It also covers companies or trusts controlled by such individuals. Control thresholds matter, even partial overseas ownership can trigger the Act.

Sensitive and Residential Land

Residential land is often treated as “sensitive,” especially when it borders the coast, islands, reserves, or conservation land. Buying this land usually requires OIO consent, even for development.

See also: Buying property in NZ as a non-resident

Other Triggers

Beyond housing, the Act also covers investments in significant business assets, forestry, and other land categories. These can all require OIO consent depending on the asset type and control level.

Who Can Buy Property in NZ

New Zealand Citizens and Residents

If you’re a NZ citizen or hold residence (and live here ordinarily), you can generally buy property freely — no OIO consent needed.

Australians and Singaporeans

Thanks to trade agreements, Australian and Singaporean citizens or permanent residents are largely exempt from most residential restrictions.

Residence-Class Visa Holders

If you hold a residence-class visa and plan to buy or build one home to live in, you can apply for OIO consent under the “home to live in” pathway.

Developers and Housing Supply Investors

Overseas investors can sometimes buy residential land to increase housing supply — for example, to build new homes that will be on-sold. But they cannot hold the completed dwellings for rental or personal use.

High-Value Investor Visa Pathway (2025)

A new rule (expected late 2025) will allow approved investor visa holders to buy or build a residential property worth NZ$5 million or more. This applies only to accredited high-net-worth investors and remains subject to OIO approval.

Who Cannot Buy Property in NZ

For most overseas persons, existing homes and lifestyle properties are off-limits unless you hold NZ residency or obtain OIO consent. The Act also restricts purchases of: rural or environmental land, especially large blocks; coastal, island, or conservation-adjacent properties; and sensitive or heritage land under environmental protection. Even if a deal appears exempt, the Government can “call in” transactions on national interest grounds — a rarely used but powerful clause.

How OIO Consent Works

OIO consent must be obtained before the purchase becomes effective.

Key Approval Tests

• Benefit to New Zealand Test: You must prove the purchase delivers a measurable benefit to NZ — through housing supply, economic activity, environmental gain, or cultural value.

• Investor Test: The OIO reviews your background, financial standing, and compliance history.

• Control Interest Thresholds: Crossing ownership or control limits can trigger consent requirements.

• Processing Times: Most applications take 70–100 working days, depending on land type.

Conditions and Oversight

Consents often include post-approval conditions — for example, completing development within a timeframe or maintaining public access. The OIO monitors ongoing compliance, and breaches can lead to penalties or forced divestment.

What to Check Before Signing a Sale & Purchase Agreement

Confirm whether the property is sensitive land; check if OIO consent is required or already held by the vendor; insert a consent condition clause in your contract; clarify intended use (home, investment, or development); factor in delays and fees - consent may extend settlement; and always obtain specialist legal advice before proceeding.

Recent and Upcoming OIA Reforms (2025)

Reform is underway, with the Government proposing changes to streamline and modernise the regime. The draft Overseas Investment (National Interest and Other Matters) Amendment Bill 2025 seeks to simplify approval steps, merge overlapping tests, and shorten consent timeframes for low-risk, non-residential deals. It also refocuses the law’s purpose toward “facilitating overseas investment unless contrary to New Zealand’s interests.” However, residential property restrictions are not expected to ease - these remain a core political safeguard.

Summary: What Buyers Should Know

Buying residential property in New Zealand as a foreigner is possible - but only under strict conditions. The OIA limits who can buy, what can be bought, and under what circumstances. A few clear exceptions exist, such as citizenship, long-term residence, and approved development projects. For everyone else, OIO consent is required - and the process is technical, time-consuming, and expensive if mishandled. Before you sign a contract, check the rules, seek professional advice, and keep an eye on ongoing reform. The difference between a successful purchase and a failed one often comes down to preparation.

Next Step: Get Clarity Before You Buy

Buying from overseas doesn’t have to be confusing — but you do need the right advice. Our team specialises in helping Aussies, Brits, and offshore Kiwis navigate NZ’s complex lending and property rules. Talk to a New Zealand Mortgages specialist to understand your next move.