Overseas Investment (Build-to-rent and Similar Rental Developments) Amendment Act 2025
Version updated on 10 April 2025 to make an editorial change to section 2.
Overseas Investment (Build-to-rent and Similar Rental Developments) Amendment Act 2025
Public Act |
2025 No 4 |
|
Date of assent |
24 February 2025 |
|
Commencement |
see section 2 |
Contents
The Parliament of New Zealand enacts as follows:
1 Title
This Act is the Overseas Investment (Build-to-rent and Similar Rental Developments) Amendment Act 2025.
2 Commencement
This Act comes into force on 25 February 2025.
Section 2: editorial change made by the PCO, on 10 April 2025, under sections 86(1) and 87(m) of the Legislation Act 2019 (2019 No 58).
3 Principal Act
This Act amends the Overseas Investment Act 2005.
Part 1 Amendments to principal Act
4 Section 6 amended (Interpretation)
In section 6(1), insert in its appropriate alphabetical order:
large rental development test means the test set out in clause 11A of Schedule 2
5 Section 16 amended (Criteria for consent for overseas investments in sensitive land)
After section 16(1)(b)(i)(B), insert:
(BA)
the large rental development test:
6 Schedule 2 amended
(1)
In Schedule 2, clause 1(1)(b), after “the increased housing test,”
, insert “the large rental development test,”
.
(2)
In Schedule 2, Part 3 heading, after “Increased housing,”
, insert “large rental development,”
.
(3)
In Schedule 2, clause 10, replace “3 tests”
with “4 tests”
.
(4)
In Schedule 2, after clause 11, insert:
Large rental development test
11A How large rental development test is met
(1)
The large rental development test is met if the relevant Ministers are satisfied that—
(a)
the residential land is a single site, or adjacent sites separated by infrastructure (such as roads), with 1 or more buildings that, taken together, consist of 20 or more dwellings suitable for use as, or conversion to, residential dwellings; and
(b)
at least 20 of the residential dwellings will be, or are likely to be, available for use, within a time frame that is satisfactory to the relevant Ministers, as a residential dwelling occupied under a residential tenancy to which the Residential Tenancies Act 1986 applies or would apply (the large rental development outcome); and
(c)
the non-occupation outcome (as defined in clause 17) will, or is likely to, occur.
(2)
See also clause 18 (which sets out certain conditions to be imposed on consents that rely on meeting this test).
(5)
In Schedule 2, clause 18(2)(b), table, after item 1, insert:
| 1A | Large rental development test |
The large rental development outcome (as defined in clause 11A(1)(b)) The on-sale outcome (as defined in clause 17), if clause 11A(1)(b) ceases to be met The non-occupation outcome (as defined in clause 17) |
(6)
In Schedule 2, clause 19(1), replace “sections 16A(1)(c) and”
with “section”
.
(7)
In Schedule 2, clause 19(2)(c), table, replace item 7 with:
| 7 | Operation of existing shared equity, rent-to-buy, or rental arrangements (as referred to in the next column) in a development of 20 or more residential dwellings |
All of the residential dwellings in the development are dealt with under 1 or more of the following arrangements that are satisfactory to the relevant Ministers: (a)joint ownership of the residential dwelling with an occupier (for example, an arrangement commonly referred to as a shared equity arrangement): (b)divestment of ownership of the residential dwelling to the occupier over a period of time (for example, an arrangement commonly referred to as a rent-to-buy arrangement): (c)lease of the residential dwelling to an occupier: (d)divestment of ownership of the residential dwelling The non-occupation outcome (as defined in clause 17) |
(8)
In Schedule 2, repeal clause 19(3).
(9)
In Schedule 2, clause 20(2)(a)(iii), replace “OP will lease”
with “lease of”
.
(10)
In Schedule 2, repeal clause 20(2)(c).
7 Schedule 4 amended
In Schedule 4, after clause 2(1)(a), insert:
(aa)
the large rental development test; or
Part 2 Amendments to regulations
8 Principal regulations
This Part amends the Overseas Investment Regulations 2005.
9 Schedule 2 amended
(1)
In Schedule 2, item 6, after “the increased housing test,”
, insert “the large rental development test,”
.
(2)
In Schedule 2, item 7, after “the increased housing test,”
, insert “the large rental development test,”
.
10 Schedule 5 amended
In Schedule 5, clause 2(1), table, item relating to 55 working days, second column, after “(the increased housing test,”
, insert “the large rental development test,”
.
Legislative history
11 June 2024 |
Introduction (Bill 61–1) |
|
25 June 2024 |
First reading and referral to Finance and Expenditure Committee |
|
24 October 2024 |
Reported from Finance and Expenditure Committee (Bill 61–2) |
|
29 January 2025 |
Second reading |
|
18 February 2025 |
Committee of the whole House |
|
20 February 2025 |
Third reading |
|
24 February 2025 |
Royal assent |
This Act is administered by the Treasury.