World First Property Development Model To Launch In NZ Following FMA Guidance

The launch of a world-first real estate investment model that democratises access to one of the country’s most exclusive asset classes is set to lower barriers to residential property development for thousands of New Zealanders.

The model, which follows the issuance of new guidance from the Financial Markets Authority (FMA), works by allowing everyday Kiwis to buy shares in residential property developments, giving them a proportionate stake in the profits once the homes are built and sold - but without the need for large deposits, personal guarantees or developer-level capital.

It is believed to be the first time anywhere in the world that everyday investors can take a regulated fractional share of the full residential development cycle, from land acquisition through to construction and sale, inside a closed and compliant tokenised platform.

Industry experts say the introduction of the model could transform how New Zealanders build wealth by opening up direct participation in the value-creation cycle of property development.

They say tokenisation could enable investors to gain exposure to property assets by investing in securities issued by a company that owns or develops the building, with digital tokens used to manage and track those investments. It is believed the model will provide fairer access to the market, enabling small-scale investment that opens the door to young people, renters, and everyday Kiwis who have previously been locked out of real estate ownership.

New FMA guidance has confirmed the model ‘falls within section 309(2)(b) of the exemption, meaning the platform is not a financial product market under the Financial Markets Conduct Act and does not require a market operator licence’. The guidance followed the FMA’s 2025 tokenisation consultation, marking the first step in what the regulatory body describes as “a dialogue about the current use and future potential of tokenisation in New Zealand’s financial markets.”

According to the FMA’s discussion paper, tokenisation is increasingly being adopted internationally in financial markets, with digital tokens being used to offer a range of products and instruments to both retail and wholesale investors. The FMA sought feedback on how New Zealand’s current regulatory environment may be supporting or constraining tokenisation, the potential benefits and risks it presents, and what an effective future market and regulatory framework should look like.

The consultation period was extended and closed in November 2025. The FMA has indicated it intends to publish insights in the first quarter of 2026 outlining its expected direction of travel in this area.

Dehardt van der Merwe, founder of fintech Propopoly, says home ownership in New Zealand has been falling for decades. The latest Census data shows just 66% of households now own their home, down from 74% in 1991.[1]

He says younger generations have been hit hardest, with fewer than 40% of people aged 25–34 owning a home, compared with more than 60% three decades ago. Escalating prices, stagnant wages and tighter lending rules have left many locked out of the market.

“This new FMA guidance is significant as it removes a major compliance barrier and enables the first practical pathway to support the introduction of a tokenised real estate investment model to New Zealand. This approach enables fractional ownership of residential development projects, meaning individual Kiwis can purchase a small share in a property venture,” he says.

Van der Merwe says globally, tokenisation is reshaping investment. Deloitte forecasts that US$4 trillion in real estate will be tokenised by 2035, up from less than US$0.3 trillion in 2024, representing a compound annual growth rate of 27%.[2]

“By converting property into digital tokens that can be traded securely, tokenisation offers lower entry costs, greater transparency and liquidity in what has traditionally been an illiquid market,” he says.

His company is the first to leverage the guidance. Under its vertically integrated model, investors can purchase equity shares in a Special Purpose Vehicle (SPV) tied to a residential land development. The company’s development partners then manage the construction of new homes over an eight-month period and place them on the open market.

Van der Merwe says he plans to launch five projects in 2026, with a target of developing 350 homes in the first three years. Over the medium term, he aims to scale this to 1,000 properties nationwide, beginning with projects in Auckland before expanding into other regions.

“Investors are able to participate with as little as $500 plus any transaction fees, making the model accessible to a much wider portion of the population than traditional property investment. The first project, Victor Lima 6, will aim to raise up to $1.6m and allow around 3,280 investors to take part, meaning thousands of Kiwis could directly share in the wealth generated by new housing developments within our platform’s first rollout phase.

“This model opens up access to profits traditionally reserved for professional developers. It is about giving everyday Kiwis a seat at the table.

“Real estate tokenisation is already gaining traction overseas. In Canada, the T-RIZE Group signed a US$300 million deal to tokenise a 960-unit residential project, while Dubai has launched a government-backed initiative to make tokenised ownership a mainstream option by 2033,” he says.[3]

Van der Merwe, who holds a Master of Property Practice (MPropPrac) degree from the University of Auckland, says initial interest in the model has been strong, reflecting pent-up demand for fairer ways to participate in property wealth creation.

He says the investment offering will be open only to New Zealand residents, ensuring the benefits of this model remain local.

“Most New Zealanders are permanently excluded from the value-creation cycle of property development.

“Our mission is not just to turn renters into owners. It is to let excluded New Zealanders co-own, co-invest and co-create the future of their cities. That is shared growth, not just ownership,” he says.

Van der Merwe is already in discussions with development partners to secure its pipeline of land and projects. The model is designed not only to deliver financial returns but also to contribute to easing New Zealand’s housing shortage.

Potential investors are advised to review the Product Disclosure Statement (PDS) for Victor Lima 6 which is now live here. Victor Lima 6 Limited is the issuer of the equity securities under the offer of the first development.

Notes:

[1]First detailed insights from the 2023 Census. es.infometrics.co.nz/article/2024-10-first-detailed-insights-from-the-2023-census

[2] Digital dividends: How tokenized real estate could revolutionize asset management. (2025, December 24). Deloitte Insights. deloitte.com/us/en/insights/industry/financial-services/financial-services-industry-predictions/2025/tokenized-real-estate.html

[3]Digital dividends: How tokenized real estate could revolutionize asset management. (2025, December 24). Deloitte Insights. deloitte.com/us/en/insights/industry/financial-services/financial-services-industry-predictions/2025/tokenized-real-estate.html

• About Tokenisation: Tokenisation converts physical assets, such as real estate, into secure digital tokens that represent fractional ownership. This lowers the barriers to entry, increases liquidity in traditionally illiquid markets, and provides transparent governance through blockchain technology. Deloitte projects that US$4 trillion worth of real estate could be tokenised globally by 2035.
• About Propopoly: Propopoly is a New Zealand-based fintech purpose-built to democratise access to property development. Fully compliant with the Financial Markets Conduct Act, every token is backed by real equity in specific projects through ring-fenced Special Purpose Vehicles. The platform is available exclusively to New Zealand residents.

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