Golden Visa lifts New Zealand luxury rental demand

Tech entrepreneurs and other wealthy international migrants are driving a rise in New Zealand's luxury rental market. New data from realestate.co.nz and Stay Luxe links the increase to interest in the country's Golden Visa pathway.

Demand in the luxury rental market rose 43% between January and May from the same period a year earlier, according to realestate.co.nz. International luxury rental activity in April and May was up 123% year on year, suggesting overseas interest strengthened after changes to the Active Investor Plus visa took effect.

Separate data from Stay Luxe showed property searches climbed 200% over the same January-to-May period. Many high-net-worth visitors are using short-term luxury stays to assess regions, schools, services and neighbourhoods before deciding on residency or a property purchase, the accommodation platform said.

That pattern is generating spending beyond the housing market. Industry participants said visitors were supporting accommodation providers, homeowners, restaurants, transport operators, concierge firms, retailers and tourism businesses before making any longer-term investment.

Sarah Wood, Chief Executive Officer of realestate.co.nz, said the rental market was acting as an early indicator of purchasing intent among affluent overseas visitors.

"Luxury rentals give us an early read on buyer intent before it turns into a purchase. These visitors are spending time in the market, comparing locations and building confidence before making a significant property decision," Wood said.

She said the strongest growth had appeared at the top end of the market and had become more visible from April.

"What is interesting is that the lift is strongest in the premium rental category and becomes much more pronounced from April onwards. That timing is consistent with the Golden Visa bringing new international interest into the part of the market where high-net-worth demand is most likely to appear first," Wood said.

Longer stays

Golden Visa migrants are staying about five times longer in luxury rental accommodation than other high-net-worth travellers, according to Stay Luxe. Its figures put the average stay for these guests at 32 nights, compared with about seven nights for standard luxury travellers.

Greg Owen, Co-Founder of Stay Luxe, said the spending effect extended well beyond accommodation.

"What we are seeing is that these visitors are not just arriving in New Zealand and buying a home. They are coming here first, staying in luxury accommodation, exploring different regions, using local services and deciding whether New Zealand is the right long-term fit for them," Owen said.

"That creates a much broader economic impact than many people realise. The accommodation provider benefits, but so do homeowners, chefs, drivers, concierge providers, helicopter operators, charter companies, restaurants, retailers, galleries and local tourism businesses," he said.

Stay Luxe said 81% of its guests were international. North America accounted for 41% of international guests, followed by Australia on 27%, Asia on 12%, the UK on 9% and Europe on 4%.

Wood said Auckland was seeing the highest demand, with luxury rental activity in the city more than six times higher in May than a year earlier. She said international visitors often began their search there because of the larger stock of premium homes and access to schools, services and transport links.

"The growth we are seeing around luxury rentals reflects the way high-net-worth buyers tend to approach a major move. They want time on the ground to understand neighbourhoods, schools, lifestyle, services and the type of property that would suit them before they make a longer-term commitment," Wood said.

Spending profile

Stay Luxe said its top-tier properties had an average total booking value of about NZD $77,600, with an average nightly rate of NZD $4,750 and an average stay of 16 nights. Its second-tier properties had an average booking value of about NZD $13,400, with an average nightly rate of NZD $1,690 and an average stay of eight nights.

Owen said additional spending could range from about NZD $500 a day for concierge support to as much as NZD $8,000 a day for combinations of private chefs, in-house spa treatments, personal drivers and security. He estimated each stay generated about NZD $20,000 in extra spending beyond accommodation, covering food and drink, activities, domestic travel, retail, art and gifts.

"That length of stay changes the economics completely. A typical luxury holiday guest may spend heavily for a week, but Golden Visa and relocation visitors are often here for a month or more. They are living in the community, dining out, travelling domestically, shopping, using services and, in some cases, actively looking for property," Owen said.

The platform said its average daily rate had increased 16% from a year earlier, while some properties had more than doubled their average daily rate. Occupancy was running about 12% above the wider market.

Owen said off-peak periods could also benefit because relocation-driven visitors were less tied to holiday seasons.

"June to September is usually the quieter period for luxury accommodation, but Golden Visa travellers are different from seasonal tourists. If they are staying an average of 32 nights and travelling year-round, that has an immediate impact on occupancy and revenue," he said.

Supply question

The rise in demand is also highlighting limits in supply at the very top end of the market. Owen said New Zealand had strong luxury homes and lodges but lacked the depth of ultra-luxury accommodation seen in parts of Europe, the United States and Australia, especially for guests travelling with family, staff or security teams.

He said some property owners might not yet appreciate the rates international visitors were prepared to pay for homes offering privacy, design and location.

"New Zealand has outstanding luxury homes and lodges, but we do not yet have the same depth of supply at the very top end. International guests travelling with family, staff or security teams often need large residences, multiple bedrooms and a very high level of service," Owen said.

"There is a real opportunity for New Zealand property owners. Some owners may not realise there are international guests prepared to pay premium rates for the right property, particularly if it offers privacy, design, location and a genuinely high-end experience," he said.