Government Funds New Hawke’s Bay Racecourse to Unlock Housing and Boost Jobs

Racing Minister Winston Peters and Regional Development Minister Shane Jones say the transformation project will represent more than $77 million of investment in the region.

The Government has announced a major investment in Hawke’s Bay aimed at revitalising the local racing industry, stimulating economic growth, and unlocking land for desperately needed new housing in Hastings. Racing Minister Winston Peters and Regional Development Minister Shane Jones say the transformation project will represent more than $77 million of investment in the region.

The new development will be supported by a $20 million loan from the Regional Infrastructure Fund, with the remaining $57 million provided through co-funding by Hawke’s Bay Racing Incorporated and New Zealand Thoroughbred Racing Incorporated.

Minister Shane Jones says the investment delivers multiple regional benefits.

“This initiative will enable the development of homes where they are needed, create jobs for locals and retain a valuable racing industry asset that has contributed to the local economy for over 150 years.”

Relocation to Secure Industry Future and Expand Capacity

The project centres on relocating the Hastings Racecourse, which has been closed for racing since 2024 due to significant safety concerns with the track. According to Winston Peters, the closure posed a direct threat to the thoroughbred racing sector in the region.

“The racecourse closure was threatening the thoroughbred racing industry’s $37 million annual GDP contribution to the Hawke’s Bay and Gisborne economy.”

The new venue will be designed as a modern, multi-use facility capable of hosting racing, equestrian events, and a wide range of community activities. Its upgraded racetrack infrastructure will support up to twice the number of race meetings previously held in Hastings, strengthening the region’s racing calendar and improving long-term industry sustainability.

Unlocking Land for More Than 600 Homes

A central benefit of the relocation is the opportunity to redevelop the existing racecourse site, which is already zoned for residential use. Minister Jones says this will directly support housing growth.

“The project enables the existing racecourse site to be freed up for more than 600 new houses.”

With housing demand increasing across Hawke’s Bay—particularly after recent weather events put pressure on local supply—this redevelopment represents a significant opportunity for urban expansion close to existing infrastructure and amenities.

Community Resilience and Disaster Preparedness

Beyond racing and housing, the new racecourse site will serve an additional purpose as a civil defence centre for the Flaxmere community. Its design will include resilient infrastructure capable of supporting emergency operations and providing safe shelter in the event of natural disasters.

Economic Boost and Long-Term Regional Impact

The project is expected to generate more than 400 full-time construction jobs over its four-year build period. Once operational, the racecourse and its associated facilities will sustain around 270 jobs across the wider local racing industry, providing ongoing economic benefits.

Minister Jones says the initiative strengthens both the past and future of the region.

“This initiative is about more than bricks and mortar. It is a boost for the regional economy, and it continues more than 150 years of racing history in the region.”

With housing growth, industry revitalisation, job creation, and improved community resilience, the Hawke’s Bay racecourse transformation stands as one of the region’s most significant redevelopment opportunities in a generation.