If a government minister slips the same line, verbatim, into two high profile speeches across two months, then there is really not much easter left in the egg.
So when Housing Minister Chris Bishop said, in front of the LGNZ conference and the WCC, “Fixing the housing crisis will help grow the economy by directing investment away from property,” his positioning couldn’t be clearer: The government is done building policy around property investors’ spreadsheets. And if reading that makes you uncomfortable, good. Discomfort is useful if it drives action.
Capital Gain Isn’t Strategy
For the longest time, capital gain has been sold as a feature of property investment. It is the golden goose at the end of the tunnel that makes weekly cash top-ups tolerable. All the while, inflation, rental income, (diminishing but persistent) tax efficiency and planning gridlock quietly compounded in the background, inflating balance sheets and egos alike.
What if it is less of a feature and more of a bug? What if it is just the spoils of a flawed system that rations supply? What if investors are less Bugs Bunny and more Wile E. Coyote? 
And if you feel yourself being suspended mid-air, legs spinning, waiting for policy reversal. Sorry, it ain’t coming. At least not when Chris is in charge.
For the record, I’m personally aligned with the direction the Minister is setting. Excessive capital gain, borne off the back of a flawed, constricted system that rewards time-served over ingenuity, productivity or risk, is at the heart of some of our deepest social fractures. I’m thinking of the growing divide between wage earners and asset holders, populist politics that are more interested in scapegoating than solving and the casual, almost instinctive way Kiwis take a pot shot at investors.
Passive Uplift is a Dead Model
The way I see it is the portfolios that depend on massive capital gains as a lifeline are not built on strategy. They are built on subsidies. And the subsidy is going.
The Minister isn’t declaring war on investors, he is prepping the market for what comes next: Our system will no longer inflate your equity. Planning liberalisation, infrastructure reform and standardised zoning will all do one thing — bring down prices, or at least stop them from rising by default.
This is the end of passive entitlement wrapped up as ‘property investment’ sold to you at a seminar 10 years ago as financial planning. Time in the market won’t cut it anymore. If you want to stay in property, the Minister wants you to show up: build, upgrade, intensify. Create value because the government is done handing it out to you.
Property is not a Bad Investment but Lazy Property Investment is a Bad Risk
For all the talk about diversification and wealth building, few will admit that we’ve built an investor class that is asset-literate not financially literate. For years, we’ve confused buying property with building wealth. Anyone can accumulate. Real investors optimise.
The next chapter for APIA members is more than just surviving higher interest rates and new tax rules. It’s about building value, not just buying it. Know your numbers cold, have a working relationship with a planner and understand that smart density and good architecture are the new competitive edge. Next-gen investors will know to scout opportunities in zoning overlays. They will create yield where others only see gaps and work. They will do more than own assets — they will optimise the heck out of them. And in doing so, they will be part of the solution and not collateral damage in the housing policy war.
As jarring as that may come across, I have faith that investors can pull through.
By the time Jacinda, Grant and Megan took the podium in March 2021 to scrap interest deductibility, investors had grown complacent. That announcement forced a reset. And the ones who are still standing today are not richer — they are sharper, more deliberate, and more resilient.
So if you are reading this, odds are you’re no stranger to retooling and rebuilding. Good. Because this time, you are not being caught with your pants down. The Minister is literally broadcasting his intentions left, right and centre. So the question is: are you smart enough to make the right move before everyone else does?
What This Means for APIA Members
If you are holding land, here is what you should do now:
- Review every title in your portfolio. Check zoning, proximity to transport and existing infrastructure.
- Get across the draft national planning framework and assume less local friction and more central direction.
- Make your voice count. The Minister is openly inviting feedback. If you have any sharp ideas to fix the planning system to unlock more housing, send them to us — we’ll put it in front of him.
- Revalue based on buildability, not scarcity. Rethink the highest and best use of each property. That’s where future uplift will come from.
- Start building relationships with planners, architects and builders. The sooner you are shovel-ready, the more ahead you will be when opportunity presents itself.
Game On
The Minister has laid down the new ground rules. The message is clear: if the good old days didn’t build houses, then nostalgia won’t save us now.
I get it. I’m not interested in clinging to the past and defending a broken status quo. My work with APIA is to help serious investors play the long game, build productive and future-proof portfolios so they are part of the solution. That’s where the next round of gains will come from.
Sarina Gibbon
Sarina Gibbon is the general manager of the APIA.
Disclaimer: This article provides general guidance only and should not be relied upon as legal advice. Specific situations may vary, and you should seek professional legal advice for your particular circumstances.
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