The RMA has long been seen as a barrier to housing development in Hawke’s Bay, with complex rules and slow consent processes making it difficult to build or subdivide. Now, reforms aim to streamline the planning system and put more emphasis on enabling new housing supply.
For new investors, this opens the door to smaller-scale projects that once seemed out of reach, from adding a minor dwelling in Hastings to subdividing a larger section in Napier or Havelock North. With property values under pressure and demand fluctuating, these reforms could provide a pathway to better long-term returns when the market strengthens.
Key changes that affect Hawke’s Bay investors
Here’s what the reforms mean in practice for local investors:
- Faster decision-making – Local councils in Hawke’s Bay will face stricter timeframes on processing consents, reducing holding costs.
- Consistent planning rules – National standards will help reduce variations across Napier, Hastings, and Central Hawke’s Bay, providing more clarity for investors.
- Encouragement of intensification – Reforms will support townhouses, duplexes, and infill development in urban centres like Hastings and Napier, where demand for housing is expected to grow again.
- Clearer environmental protections – Flood-prone areas, especially those highlighted after recent cyclone and storm events, will remain restricted. For investors, the reforms will provide clearer mapping and upfront information, helping to avoid high-risk sites and focus instead on land with secure development potential.
- Spatial planning – Growth corridors such as those near transport routes and expanding suburbs around Hastings and Havelock North will be prioritised, guiding investors to areas with future demand.
How new Hawke’s Bay investors can benefit
1. Adding a minor dwelling
Many sections in Napier and Hastings can host a secondary unit, and with faster consents, investors can add rental income more easily.
2. Subdivision opportunities
Larger sections in Hastings, Taradale, and Central Hawke’s Bay could be more easily subdivided under simplified rules, creating new investment opportunities.
3. Multi-unit housing potential
Urban areas such as Napier South and Hastings Central could see stronger support for medium-density housing, reflecting changing housing needs in the region.
4. Targeting growth areas early
Regional spatial plans will highlight preferred growth zones, such as around Havelock North and Flaxmere. Investors who secure properties early in these corridors could benefit from both rising demand and improved infrastructure.
5. Lower barriers to entry
For first-time investors, clearer rules mean reduced uncertainty, helping to make smaller-scale projects more achievable without excessive legal or planning costs.
Old system vs new system in Hawke’s Bay
| Feature | Old RMA system | Reformed system | Impact for Hawke's Bay investors |
| Consent times | Often delayed, costly | Faster processing deadlines | Reduced holding costs |
| Planning rules | Differed between Napier, Hastings, and CHB | Standardised national direction | Consistency across the region |
| Housing density | Limited, subject to pushback | More support for intensification | Easier to add townhouses or units |
| Growth planning | Fragmented | Regional spatial plans | Clearer growth corridors (e.g. Hastings fringe, Havelock North) |
A roadmap for Hawke’s Bay investors
Step 1: Research regional growth plans
Follow updates on Hawke’s Bay’s growth corridors and council infrastructure projects to identify hotspots.
Step 2: Focus on properties with development potential
Large backyards, corner sites, and sections near key transport routes may see stronger growth potential.
Step 3: Start small and build confidence
Adding a minor dwelling or small subdivision can help new investors build experience while benefiting from the reforms.
Step 4: Consider partnerships
Co-investing with family or trusted partners can provide more capital to unlock townhouse or multi-unit developments.
Step 5: Stay adaptable
Keep plans flexible as Hawke’s Bay councils implement reforms at different speeds.
Risks to be aware of
• Transition challenges – Some projects may be caught between old and new rules.
• Environmental constraints – Flood and cyclone-affected zones will remain strict in parts of the region.
• Council resourcing – Local councils may face capacity challenges in implementing the reforms.
• Market cycles – Broader property market shifts will still influence returns.
Conclusion
The RMA reforms are set to reshape Hawke’s Bay’s property market, making it easier for new investors to take on smaller projects and benefit from long-term growth. By focusing on growth corridors, identifying properties with hidden potential, and acting early, investors can position themselves to capture opportunities at lower entry prices today, setting up for stronger returns when demand and rents recover.
