Following our recent conversations with mortgage advisers in Canterbury and Auckland, this month we turn to Tauranga and the wider Bay of Plenty.
We spoke with Nick Berry, Mortgage Adviser at Loan Market NZ in Mount Maunganui, about what he is seeing on the ground, from increased first-home buyer activity and slower development to where borrowers are looking for more flexible finance.
Can you tell us a little about your role and the types of clients you're working with at the moment?
I’m a mortgage broker based in Mount Maunganui. My role is to help clients understand their options when it comes to property finance and find the right solution for their circumstances.
What keeps the role interesting is the broad range of clients we work with and the different goals they are trying to achieve. A big part of the job is making that process as straightforward as possible while helping clients understand the options available to them.
What are you seeing in terms of borrower activity in Tauranga and the wider Bay of Plenty?
We’re seeing a lot of repeat business from existing clientele who are considering upsizing or downsizing and want to understand their finance options. Bridging finance can be tricky to navigate and carries risks, so a big part of our role is making sure those risks are understood and managed where possible.
First-home buyers have definitely become more active recently. There are a lot of properties on the market, which gives buyers more choice and, in some cases, the opportunity to secure good value.
We’re seeing fewer investors at the moment, although I expect activity to pick up again following the election.
Are there any particular parts of the region where you're seeing the most development activity?
Development activity in Tauranga is slower than in previous years, but developers have never stopped looking for opportunities.
The Mount and Pāpāmoa have several smaller seven-to-eight-unit developments underway, which appear to be selling well. Some local developers are also looking further afield where project costs, including development contributions, can be lower.
Are there any areas that are softer than expected?
The Mount and Pāpāmoa could be considered a little softer given the amount of property currently on the market, although it depends heavily on the individual property and price point.
Luxury properties can still attract a large buyer pool and strong competition, particularly because many purchasers are looking for a ‘completed’ product rather than a property requiring significant work. Properties in the tier below can sit on the market for longer and attract less competition.
What is happening in the region's construction and development market right now?
With building costs remaining reasonably high and property values relatively stagnant, some projects have slowed. We’re seeing builders take on their own projects where they can add value to a property and keep their tradespeople busy between other jobs.
At the same time, improved availability of tradespeople means people who are ready to proceed with a project can often get started faster than they could during busier years.
How would you describe buyer and borrower confidence in the Bay of Plenty compared with 12 months ago?
Buyer confidence seems patchy. The end of 2025 was looking optimistic, with interest rates lower than they'd been for a long time, and we were seeing a bit more buyer urgency. It's been a rough 12 months since, with high inflation and rising living costs, the oil crisis in the Middle East, and rates on the rise again.
Things can only improve, as there have been so many macroeconomic issues outside our control. We do have the fortune of a hands-on Reserve Bank and government in a relatively small country, meaning they'll act when they think it's needed to get things going.
In what situations are borrowers looking beyond the banks now, and where do non-bank lenders like Southern Cross Partners tend to fit into those deals?
Non-bank lenders like Southern Cross are a great fit for clients who don't meet the banks' stringent criteria but have property to use as security and a solid exit strategy.
Some examples:
- Situations where settlement or another deadline requires a faster lending decision.
- For clients with good equity but little or no income, or whose income is derived from property development. Banks' hands are tied by the CCCFA, so they're restricted in what they can support – though things have eased somewhat with banks no longer scrutinising Netflix and coffee spend, they remain far more conservative than in the past.
- Developers who have completed a project but still hold residual stock and want to use that equity towards their next project.
- Non-banks are providing solutions that help developers keep moving forward.
For the SCP investors reading the blog, what should they understand about what is happening on the ground in Tauranga and the wider Bay of Plenty?
Mount Maunganui and Tauranga remain very desirable places to live, and we continue to see people relocating from Auckland. We have great diversity here across industries like tourism, the port, and horticulture. The ability to work remotely has had a big impact on the number of people able to move to this stunning region.
One thing that has significantly impacted the local area is the landslide at Mauao in January this year, which tragically claimed six lives at the Mount Maunganui campground. Mauao is such a big part of the community's lifestyle, and it's still closed eight months on. Local businesses have suffered, which has hurt business confidence.
What's your outlook for the Bay of Plenty property market over the next 6–12 months?
I'd expect things to stay fairly subdued over the next six months while we wait for the election outcome, understand any resulting policy changes, and see the end of the current rate-rise cycle.
After that, summer traditionally brings more visitors to the Bay and I expect activity to pick up. In the meantime, the amount of stock available means there are still opportunities for buyers who are in a position to act.