Trade Minister Todd McClay announced the NZ EU Free Trade Agreement’s commencement, significantly benefiting Kiwi exporters with $100 million in tariff reductions. The agreement, resulting from over 15 years of efforts, enhances New Zealand’s trade prospects by improving market access for key exports like kiwifruit, wine, and seafood, and aligning with the country’s strategic goals to double export values over the next decade.
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In a strategic move to bolster the housing sector, the coalition Government has announced plans to introduce legislation aimed at streamlining the investment process for overseas investors in Build to Rent (BTR) developments in New Zealand. Housing and Associate Finance Minister Chris Bishop detailed the Cabinet’s decision to amend the Overseas Investment Act 2005, a key component of the Coalition government’s 100-day Plan, designed to foster the growth of BTR housing developments. This initiative represents a significant shift towards accommodating a relatively new, yet promising, rental housing model in New Zealand.
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The coalition Government is set to ease the path for overseas investors eyeing Build to Rent developments in New Zealand, as announced by Housing and Associate Finance Minister Chris Bishop. In an effort to enhance the housing sector, the Cabinet has resolved to amend the Overseas Investment Act 2005, signifying a step forward in realizing a component of the Coalition government’s ambitious 100-day Plan.
Build to Rent developments, characterized by their purpose-built, medium-to-large scale rental properties, are positioned to offer more than just housing. Situated conveniently near key transport links, these developments promise a blend of professional management, superior amenities, and varied lifestyle choices, alongside the stability of longer leases for tenants. Predominantly backed by institutional investors and developers, such as pension funds, Build to Rent ventures stand out as a viable solution to elevate the availability of secure, affordable, and quality rental options in New Zealand.
Despite the evident potential for growth within the Build to Rent sector, currently marked by 22 registered developments, its expansion has been stifled by the complexities of the nation’s overseas investment regulations. In response, the Cabinet’s approval to refine the Overseas Investment Act will pave the way for a new, streamlined consent pathway. This adjustment is designed to facilitate land purchases for new Build to Rent projects or the acquisition of existing ones, complemented by a ministerial directive letter to underscore New Zealand’s openness to foreign investment in this sector.
This reform underscores the Government’s dedication to maintaining the ban on overseas investment into existing residential housing and land, except under eligible consent scenarios. The focus remains on augmenting housing supply and easing the journey towards securing warm, dry homes for Kiwis.