The Labour led coalition is sticking to its election promise to ban foreign buyers.
The new law will allow Permanent residents and Australians to buy a property without screening as long as they have resided in New Zealand for at least 183 days of the past year.
The key exemptions:
Buyers intending to knock down an existing home to build several more would also be exempt. So overseas based developers can buy existing homes and redevelop them.
Foreign buyers would be allowed to buy land and build a new home on it provided they onsold it, thus adding to housing supply.
Potentially foreigners who plan to migrate to NZ can buy homes before they get their residency. This is because the government recognises the construction labor shortage will require immigrants. Those immigrants will be allowed to buy homes if they intend to permanently migrate to NZ.
The last issue is that Australians and Singaporeans would be allowed to buy existing homes although the government may put some conditions on this.