I have read recently that NZ is really cracking down on foreigners buying up land in NZ. This is supposed to be a reaction to rich Americans and rich Mainland Chinese buying up land for investment purposes.
That seems to be a factor in more broadly interpreting "good character". Seems like it would be more straightforward to just stop or suspend foreign purchases. It's an interesting conundrum for them. Take a big hit to the economy to normalize real estate prices, or else continue the income boosts and drive up land prices for residents.
Though I'm guessing, much like here, the real estate inflation is pretty geographically targeted. Before I left, Santa Barbara was being bought up by wealthy Chinese, Europeans, and Middle Easterners, which really shot up land prices (and was great for me as a seller). Land prices in BFE California are still relatively normal.