Singapore investors target New Zealand mid-density properties

Favourable tax policies make New Zealand a hotspot for Singaporean property buyers.

New Zealand’s mid-density residential property market is attracting growing interest from Singaporean investors, fueled by favourable tax policies, migration-driven demand, and strong rental yields, according to Paul Macey, director of Citrus Living.

In an interview with Real Estate Asia at the sidelines of the Global Property Expo held in Singapore from 18 to 20 July, Macey highlighted New Zealand’s competitive advantages.

“New Zealand has a free trade agreement with Singapore. There are only three nationalities allowed to purchase property there [without consent], Singaporeans being one of them," Macey said.

"We have a stable government, a stable environment and some very favourable tax regulations on the properties,” he added.

New Zealand’s tax-friendly environment is also a major draw for investors, with no stamp duty, no capital gains tax, and freehold land ownership, according to Macey.

Migration is adding further momentum to the market.

“We have very strong migration into New Zealand. People come to New Zealand for education and lifestyle. So after the COVID pandemic, we saw 300,000 people migrate to New Zealand,” Macey said.

With a housing shortfall of 20,000 homes annually, this has created “huge demand on rental properties,” he added.

Macey said new builds are particularly attractive for investors.

“Buying new build property means you get a new property, no maintenance issues in New Zealand,” he said. Properties on city fringes offer higher yields compared to central locations.

Auckland remains the top destination, while ground-floor living and trusted developers are also key draws for Singaporean buyers.