Newsletter - March 2025
With only about a month to go before the clocks wind back and we lose an hour of daylight, it feels like summer has flown by. Much of the country has seen hot, dry weather, so for some, the arrival of cooler temperatures may be a welcome change. The year is well underway, and there’s plenty happening—especially in areas like interest rates and the labour market. While 2025 is bringing its fair share of challenges, we’re also starting to see some positive signs of growth.
On the immigration front, there have been some notable changes. The biggest updates include the revamp of the investor visa category and the introduction of new “digital nomad” rules, allowing visitors to work remotely while holidaying in New Zealand. The Government is clearly focused on attracting both tourism dollars and new investment into the country.
In this month’s newsletter, we cover key updates in employment law and discuss the use of personal guarantees. We also take a closer look at the rise in property listings, the latest changes to the investor visa program, and what the rollout of digital nomad rules means for New Zealand.
Property Listings Up, Interest Rates Down
Property Law
Media reports are coming out fast and strong claiming that there has been a surge in property listings and making all sorts of predictions for residential property in the year ahead.
This increased number of property listings, coupled with a drop in asking prices and lower mortgage rates have created what is referred to as a buyer's market. Assuming of course that buyers have confidence in long-term job stability and economic growth.
Kate Chivers from Turner Hopkins reports that sales through January and February have increased compared to the same period last year, with many sellers being more flexible on pricing and accepting lower than expected offers. This price reduction is often offered in exchange for quick completion of buyer due diligence and a short settlement period. Kate suggests that vendors are eager to move on and have accepted that a lower sale price may be necessary to make their next move a reality. Meanwhile, buyers are active in the market and those not involved in a property chain and able to secure financing quickly can secure favourable deals.
According to a recent property report, the number of homes on the market in January reached the highest level in a decade, with 32,412 properties available. This was 5,000 more than the 27,261 properties for sale in January 2024. Sarah Wood, CEO of Realestate.co.nz, noted that this was the highest stock in January since 2015. Auckland saw the largest number of listings, with over 11,465 properties available, a figure not seen since 2012. Realestate.co.nz also reported that current Auckland listings are at a 13-year high. The next OCR (Official Cash Rate) move is likely to boost buyer confidence, particularly in a market that has been relatively flat.
Kate’s advice for sellers right now is “be realistic”. Ensure your property is presented in a way that makes it stand out from the competition, be commercially savvy, and remain persistent. Well-priced, well-presented properties are selling quickly. If the price is not where you expected it to be, consider where you can make up the difference. Perhaps a lower priced offer on your next purchase?
For buyers, our advice is to do your homework. Be fully prepared when making an offer—know your numbers, and consult with your lawyer, accountant, and mortgage broker before proceeding. If price is a sticking point, consider satisfying conditions quickly and proposing a fast settlement to entice the seller into accepting your offer.
At Turner Hopkins, we have over 100 years of experience helping first-time buyers, property ladder climbers, sellers, and developers. Whatever your property needs, talk to one of our experts today.
Personal Guarantees
Litigation
In New Zealand's commercial landscape, personal guarantees are a crucial tool for securing transactions. Over recent months, there has been a noticeable increase in disputes surrounding personal guarantees, especially regarding their enforceability and validity.
A personal guarantee is a legal commitment where an individual (the guarantor) agrees to fulfil the obligations of a debtor (often a company) if that debtor defaults on a loan or other contractual obligation. This assurance provides an extra layer of security for creditors, making it easier for businesses to obtain financing or secure business contracts. If you are a director, you need to have a clear understanding of what your obligations are when signing a personal guarantee.
Companies frequently include personal guarantee clauses in contracts to mitigate financial risk. By requiring a personal guarantee, creditors ensure that the obligations will still be met, even if the company faces insolvency or struggles financially.
Many disputes arise over whether a personal guarantee is enforceable. These disagreements can stem from a guarantor claiming they were unaware they were signing a guarantee or challenging the legitimacy of the guarantee due to unclear terms.
A personal guarantee can be considered valid and enforceable if it takes the form of a Deed under the Property Law Act or as a contractual agreement. Different legal principles will apply to these options in relation to the following aspects:
Is it documented in writing?
Are the terms clearly defined?
Does it include consideration?
The amount being guaranteed.
Personal guarantees are powerful tools in commercial transactions, offering creditors more peace of mind. However, the enforceability of these guarantees relies on careful drafting, full transparency, and an understanding of legal obligations. Businesses and individuals should ensure that guarantees are properly documented and seek legal advice to avoid future disputes.
Our litigation team are available to help if you are:
A creditor in drafting a Personal Guarantee wanting to ensure the personal guarantee is valid and enforceable; and or
A Director of a company:
a. Before signing a personal guarantee, to understand your obligations; or
b. After signing a personal guarantee and querying its enforceability.
Contact our litigation team today to understand your options and protect your interests.
Unjustified Dismals - Update
Employment Law
The Employment Relations Amendment Bill is expected to pass in 2025 which will preclude employees who earn an income of more than $180,000 (base pay) from being able to raise a personal grievance for unjustified dismissal.
Cabinet has announced that, once the amendments are in force, the income threshold:
Will apply to new employment agreements entered into;
Will not apply to existing employment agreements for the first transition period of 12 months.
The transition period will give employers and employees time to negotiate and amend existing employment agreements during that period, this could include opting back in to the unjustified dismissal protection, or it could include negotiating specific clauses addressing dismissal terms and conditions.
The income threshold does not affect the employee’s ability to raise a personal grievance for any matter other than dismissal. Now is a good time to take an audit of which employment agreements might be affected by the income threshold and start planning ahead.
Contact our employment law team today.
New Investor Visa Category
Immigration
The Government has announced plans to revamp the current Active Investor Visa, with significant changes to both simplify the process for potential applicants and hopefully increase overall numbers. The changes will take effect on 01 April and will essentially create two separate investment visa pathways:
Growth - those willing to take a bit more risk and invest in direct investments or managed funds will be able to secure this visa with an investment of $5 million (NZD), and only be required to spend a total of 21 days in NZ. The investment will also only need to be maintained for a period of three years.
Balanced - for those looking to take on less risk, they will be able to invest $10 million (NZD) for five years, into things such as bonds, equities and residential property developments (with some caveats). These applicants will need to spend 105 days in NZ over the investment term (this can be reduced for a higher investment above $10 million). The trade-off here is that the higher investment, for longer allows applicants to invest in more conservative investments.
English language will be removed for all applicants, which is a significant change and the period allowed for funds to be transferred and invested here will reduce to six months from the date an application is approved in principle, with a further six month extension allowed if evidence can be provided as to why that is required.
These changes should hopefully see interest increase and in turn investment levels increase as well - which will be important given the performance of the current investor category.
In other updates, the Government has also clarified the criteria for working remotely whilst in New Zealand on a visitor visa. Previously there were no specific rules as to whether this was allowed or not, however plenty of people got themselves into hot water, coming here on holiday but working during the day for their home country employer.
The rule change was quick and simple and confirms that if you are here on a visitor visa and wish to continue working for your home country employer (remotely) you can do so. Provided the work doesn’t involve a New Zealand entity (client etc.) then you can essentially become a “digital nomad”. This is welcome news for many, who see NZ as a great place to play, whilst still being able to work and earn a living.
For more information on any of New Zealand visa systems please contact our immigration team directly.
Need Help - Get In Touch
As we move further into the year, it’s clear that change is a constant—whether in the economy, the property market, or immigration policy. Navigating these shifts can be challenging, but staying informed and prepared is key to making the most of new opportunities.
At Turner Hopkins, we’re here to help you navigate these evolving landscapes. Whether you need guidance on employment law matters, support with business or property transactions, or advice on immigration pathways, our team is ready to assist.
If you have any questions or would like to discuss how these changes might affect you, don’t hesitate to get in touch. We’re always happy to provide expert advice and practical solutions tailored to your needs.
Until next month!
Turner Hopkins
