The landscape of rural land development in New Zealand may be about to change significantly—bringing fresh opportunities for landowners and developers. As part of its second phase of Resource Management reform, the National Government has proposed a potentially game-changing amendment: removing Land Use Capability (LUC) Class 3 land from the National Policy Statement for Highly Productive Land (NPS-HPL).
This change, if implemented, could lift long-standing barriers to rural subdivision and development. At The Surveying Company, we see this as a pivotal moment for many property owners—particularly those with parcels of land previously restricted under the current LUC classifications.
Understanding the Change: What Is LUC Class 3 Land?
In New Zealand, land is classified using the Land Use Capability (LUC) system, which ranks land based on its productive potential. Class 1 and 2 lands are the most versatile and fertile, often used for intensive agriculture. Class 3 land, while still considered productive, is more constrained due to factors such as slope, soil type, or drainage limitations.
Currently, under the NPS-HPL, LUC Classes 1–3 are protected to prevent unnecessary fragmentation and to retain the country’s ability to grow food. This has meant strict limitations on subdivision and non agricultural development of such land.
The Proposed Reform and Its Impact
The Government’s proposed amendment to remove LUC Class 3 land from the NPS-HPL would effectively ease these restrictions. This change is now open for public consultation until 27 July 2025, after which the Government will review feedback and issue a final decision.
If adopted, this reform would present new opportunities for landowners who previously found subdivision proposals declined due to the LUC Class 3 mapping. Many properties across Hawke’s Bay and wider New Zealand contain a mix of LUC Classes—including significant areas of Class 3 land. These properties could soon become eligible for rural subdivision, development, or land-use changes that were previously off the table.
What This Means for You
For landowners, this is a crucial time to reassess the development and subdivision potential of your property. Whether you’ve been considering subdividing land for lifestyle blocks, selling off sections, or developing family holdings, the removal of LUC Class 3 restrictions could pave the way forward.
At The Surveying Company, we offer a complete suite of services to guide you through this process, including:
- Subdivision Feasibility Assessments – We evaluate your land’s potential under both current and anticipated regulations.
- Town Planning & Land Use Strategy – Our in-house planning team helps you navigate local and national planning frameworks.
- Resource Consent Applications – We prepare and manage all necessary documentation to help get your project over the line.
- Surveying & Title Services – Our team delivers everything from boundary surveys to LINZ title approval.
Why Now Is the Time to Act
While the proposed reform has not yet been finalised, its momentum is strong, and the direction is clear. Waiting until changes are confirmed could lead to a surge in subdivision applications—and with that, longer council processing times and greater competition.
Getting ahead of the curve means preparing now. We recommend:
- Reviewing Your Property’s LUC Class Mix
- Undertaking a Pre-Application Planning Review
- Engaging a Surveying & Planning Partner Early
Partner With Us
We’ve helped countless clients across Hawke’s Bay and beyond unlock the full potential of their land. With deep roots in the region and up-to-date knowledge of New Zealand’s evolving planning environment, The Surveying Company is uniquely positioned to guide you through this emerging opportunity.
Get in touch today for a no-obligation consultation, and let’s explore what’s possible for your land.