Real estate experts are hopeful the Reserve Bank's latest announcement over lending restrictions will benefit first-home buyers in the Bay.
The Bank yesterday announced that residential investors in the Auckland Council area using bank loans would need a deposit of at least 30 per cent. Banks would continue to have a limit of 10 per cent of new mortgage lending to Auckland owner-occupiers with deposits of less than 20 per cent.
However, outside Auckland, banks would be allowed 15 per cent of their new mortgage lending to low deposit buyers.
Chief executive of Eves and Bayleys Real Estate Ross Stanway said it was good news for Tauranga.
"Many would say that this sort of measure should have been made in 2013, when this broad sweeping measure was made," he said.
Mr Stanway said it would be more beneficial for each region to be assessed individually, or at least separately to Auckland.
"As far as the regions are concerned I think it's great news. It's certainly good news for people in our patch. I think it's a step in the right direction," he said. "It will give a real confidence booster for first-home buyers."
He was hopeful the move would encourage more locals to put their homes on the market as the demand picked up even further.
"If this measure gives a level of confidence to those thinking of selling their property, that's good."
Tauranga Harcourts managing director Simon Martin said it was positive the Reserve Bank had listened to feedback and decided to treat Auckland and the regions differently.
He did not believe the softening of the LVR restrictions in the regions would have much of an effect as banks were already lending to a number of first-home buyers who had a 10 per cent deposit.
The Reserve Bank's decision to impose a lending limit of 70 per cent on Auckland investors was likely to have a positive effect in Tauranga, Mr Martin said.
"Some of those people in Auckland that haven't got that 30 per cent [deposit] and can't buy in Auckland can buy here." He said it was hard to say how much of an impact that would have as it had never been done before.