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Yes, the analysis of Wellington's property market is included in our pack
Wellington's property market is currently stabilizing after significant price corrections, with the average property price reaching $956,548 as of September 2025. The market presents mixed opportunities depending on your investment strategy, with premium areas like Seatoun commanding over $1.6 million while central Wellington apartments offer entry points around $650,000-$750,000.
If you want to go deeper, you can check our pack of documents related to the real estate market in New Zealand, based on reliable facts and data, not opinions or rumors.
Wellington's property market shows an average price of $956,548 with significant variations by area and property type. Standalone houses average above $950,000 while apartments in Wellington Central start around $422,350.
The market has declined 6.5% year-on-year but shows signs of recovery with forecasts predicting 3-7% growth over the next year as interest rates stabilize.
| Property Type | Average Price Range | Market Trend |
|---|---|---|
| Standalone Houses | $950,000 - $1,600,000+ | Stabilizing |
| Townhouses | $700,000 - $850,000 | Growing interest |
| Apartments | $422,350 - $750,000 | Entry-level opportunities |
| Premium Suburbs (Seatoun, Kelburn) | $1,200,000 - $1,689,850 | Slight growth |
| Budget Areas (Wellington Central) | $422,350 - $650,000 | First-home buyer interest |
| Mid-range Suburbs (Karori, Johnsonville) | $800,000 - $950,000 | Stabilizing |
| Emerging Areas (Eastbourne, Southgate) | $800,000 - $1,000,000 | Positive growth |
What's the current average property price in Wellington?
The current average property price in Wellington sits at $956,548 as of September 2025.
This figure represents the average across Wellington City, while the broader Wellington region shows a median price of $795,000. The difference between these numbers reflects the varying property types and suburb quality within the region.
Wellington Central areas show lower median values around $845,000 to $882,876, depending on the specific suburb mix and data source used. These variations occur because different agencies may include different suburb boundaries in their calculations.
As of September 2025, the Wellington property market is showing signs of stabilization after experiencing corrections throughout 2024 and early 2025. This average price point makes Wellington more expensive than provincial New Zealand cities like Dunedin or Christchurch, but still significantly more affordable than Auckland's average of $1.27 million.
How do prices differ between apartments, townhouses, and standalone houses?
Property prices in Wellington vary dramatically based on the type of dwelling you choose.
Standalone houses command the highest prices, averaging above $950,000 across the city. In premium suburbs like Seatoun and Kelburn, standalone houses regularly exceed $1.4 million to $1.6 million. These properties remain the most sought-after option for families and long-term investors.
Townhouses typically range between $700,000 and $850,000 for 2-3 bedroom properties located in or near the city center. New townhouse developments can sometimes offer more affordable alternatives to standalone homes, though prices in central Wellington locations still remain expensive. Modern townhouses are increasingly popular with investors due to their compliance with current building standards and rental regulations.
Apartments represent the most affordable entry point into Wellington property ownership. Wellington Central apartments show median values as low as $422,350 to $430,900, making them attractive to first-home buyers and investors seeking lower entry costs. However, premium penthouses or large apartments in desirable locations can command significantly higher prices, sometimes reaching $750,000 or more.
What are the average prices in the main neighborhoods, from the most expensive to the more affordable ones?
| Suburb | Average/Median Price | Market Characteristics |
|---|---|---|
| Seatoun | $1,689,850 | Premium waterfront location, highest prices |
| Kelburn | $1,200,000 - $1,500,000+ | University area, up 4.1% recently |
| Mount Victoria | Around $1,100,000 | Central location, character homes |
| Oriental Bay | $1,000,000+ | Waterfront apartments and homes |
| Eastbourne | $1,000,000+ | Rising 3.9%, harbor views |
| Karori | $900,000 - $1,000,000 | Family suburbs, stabilizing prices |
| Johnsonville | $800,000 - $900,000 | Transport links, good value |
| Wellington Central | $422,350 - $430,900 | Apartments, first-home buyer focus |
Which areas are considered upcoming or budget friendly compared to the established premium areas?
Several Wellington areas show strong potential for growth while remaining more affordable than established premium suburbs.
Upcoming areas experiencing positive growth include Kelburn, Eastbourne, and Southgate, which have shown recent price increases despite the broader market correction. Kelburn has risen 4.1% recently, while Eastbourne is up 3.9%, indicating renewed investor and buyer confidence in these locations.
Budget-friendly areas that offer good value include Wellington Central, Newtown, Tawa, Porirua, and segments of Johnsonville. These suburbs are attracting renewed interest from first-home buyers seeking entry into the property market without the premium prices of established areas.
Wellington Central particularly stands out as a budget option, with apartment prices starting around $422,350. This area offers excellent transport links and urban amenities while maintaining affordability compared to traditional family suburbs.
Miramar represents another emerging opportunity, offering proximity to the airport and film industry employment while maintaining more reasonable price points than inner-city suburbs. It's something we develop in our New Zealand property pack.
How have property prices in Wellington changed compared to one year ago?
Wellington property prices have declined significantly over the past year, with the market experiencing a notable correction.
Median prices in the Wellington region dropped approximately 6.5% from 2024 to September 2025, falling from around $850,000 to $795,000. The average property price decreased by roughly 4.1% during the same period.
This decline reflects broader New Zealand housing market trends, influenced by higher interest rates, stricter lending criteria, and reduced buyer confidence throughout 2024. However, the rate of decline has slowed considerably in recent months, suggesting the market is beginning to stabilize.
Different suburbs have experienced varying levels of correction, with some premium areas like Kelburn and Eastbourne actually showing positive growth despite the broader market decline. This indicates that quality locations continue to hold their value even during market downturns.
The price correction has created opportunities for buyers who were previously priced out of the market, particularly first-home buyers and investors seeking entry points at more reasonable valuations.
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How have they changed compared to five years ago?
Over the five-year period from 2020 to 2025, Wellington property prices have shown substantial growth despite recent corrections.
Wellington median prices have risen from approximately $395,000 in 2015 to current levels around $795,000-$956,548, representing long-term average annual growth of approximately 6.76%. This growth occurred primarily during the 2020-2022 period when low interest rates and pandemic-driven demand pushed prices to record levels.
The 2020-2022 period saw particularly dramatic increases, with some areas experiencing 20-30% annual growth. However, 2023-2025 has seen corrections that have moderated these gains while still leaving overall five-year returns positive.
Even accounting for the recent 6.5% decline, property owners who purchased five years ago have generally seen substantial capital gains. The market peaked in late 2021/early 2022 before beginning the correction cycle that continues today.
This long-term perspective demonstrates that despite short-term volatility, Wellington property has delivered strong returns for medium to long-term holders, particularly those who purchased before the pandemic-driven price surge.
What are the price forecasts for the next one, five, and ten years?
Wellington property price forecasts suggest a return to moderate growth as the market stabilizes from recent corrections.
For the next year through 2026, experts predict moderate growth of 3-7% as the market stabilizes and interest rates decline from current levels. This recovery will likely be driven by improved affordability following recent price corrections and anticipated monetary policy easing.
Over the next five years (2025-2030), property prices are anticipated to continue increasing at an average of 4-6% per annum. Market-wide forecasts suggest New Zealand house prices will benefit from Official Cash Rate cuts and returning buyer confidence, though growth rates will remain more moderate than the 2020-2022 period.
Ten-year forecasts (2025-2035) present mixed scenarios. Some forecasters suggest prices could be 20% lower in real terms by the 2030s compared to the 2021 peak when adjusted for inflation. However, nominal prices are likely to continue trending upward, supported by population growth, limited housing supply, and long-term demand fundamentals.
These forecasts assume continued economic stability and gradual interest rate normalization. It's something we develop in our New Zealand property pack.
How does Wellington compare in terms of average property price with other similar-sized cities?
Wellington's average property price of $956,548 positions it as expensive both domestically and internationally compared to similar-sized cities.
Within New Zealand, Wellington commands higher prices than provincial cities like Dunedin or Christchurch, reflecting its status as the capital city and major employment center. However, Wellington remains significantly more affordable than Auckland, where average prices reach $1.27 million.
Internationally, Wellington property appears expensive compared to similar-sized Commonwealth or Australasian capitals. This reflects New Zealand's broader housing affordability challenges, driven by housing shortages, geographic constraints, and earthquake rebuilding requirements that have increased construction costs.
The city's compact geography, bounded by harbor and hills, creates natural supply constraints that support higher prices compared to cities with more available development land. Wellington's role as the national capital also supports premium pricing through government employment and associated professional services.
When comparing purchasing power and local incomes, Wellington property requires a significant income multiple for purchase, making it challenging for many local buyers despite recent price corrections.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in New Zealand versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are some real example purchase prices for typical properties right now?
Current Wellington property purchase prices vary significantly based on location, size, and property type.
Two-bedroom apartments in Wellington Central typically sell for $650,000-$750,000, depending on building quality, floor level, and specific location within the central area. These represent the most affordable entry point for property ownership in the city.
Three-bedroom standalone homes in mid-range suburbs like Karori or Johnsonville currently sell for $850,000-$950,000. These properties appeal to families seeking more space while maintaining reasonable commuting distances to the city center.
Premium standalone homes in prestigious suburbs like Seatoun or Kelburn command $1.6 million or more, with exceptional properties reaching $2 million or higher. These represent the top tier of Wellington's residential market.
Two-bedroom townhouses in newer developments typically sell for $700,000-$800,000, offering a middle ground between apartments and standalone houses. These properties often include modern features and compliance with current building standards.
Renovation projects or properties requiring significant work can sometimes be found $50,000-$100,000 below these ranges, particularly in less prestigious areas or for properties with specific challenges.
When buying, what are the extra costs to consider such as fees, taxes, and total expenses?
Property purchase costs in Wellington extend well beyond the purchase price and require careful budgeting.
Council rates represent an ongoing cost based on property value, with average 2025/26 rates increasing approximately 12% over the previous year. Annual rates typically range from $3,000-$8,000 depending on property value and location.
Legal fees for property purchase typically cost $1,500-$3,000, covering contract review, title searches, and settlement processes. These fees are essential for ensuring clear property title and completing the legal transfer.
Property inspections including LIM reports and building inspections typically cost $400-$800 total. Building inspections are particularly important in Wellington due to earthquake strengthening requirements and potential weathertightness issues.
Mortgage-related costs include application fees (usually under $500), property valuations ($500-$800), and potential mortgage insurance for high loan-to-value ratios. Banks may also charge establishment fees for new loans.
New Zealand does not impose stamp duty on property purchases, unlike some other countries. However, GST may apply to new builds or investment properties in certain circumstances. It's something we develop in our New Zealand property pack.
If you're financing, what does the mortgage typically look like in Wellington right now?
Wellington mortgage conditions as of September 2025 reflect the current interest rate environment and lending market conditions.
Typical mortgage rates currently sit at 4.7-4.9% for 1-2 year fixed terms, with 3-5 year rates ranging from 5.0-5.5%. Variable rates are slightly higher, making fixed-rate loans more attractive for most borrowers seeking payment certainty.
Most banks require a 20% deposit for optimal lending rates and conditions. First-home buyers can sometimes access lower deposit requirements through KiwiSaver withdrawal schemes and government first-home buyer programs, potentially reducing deposits to 10-15% in some cases.
Bank incentives currently include cashback offers ranging from $1,000-$3,000 for new mortgages, legal fee contributions up to $1,000, and flexible pre-approval conditions lasting 60-90 days. These incentives reflect competitive lending market conditions.
Loan-to-value ratios (LVR) restrictions require investors to provide larger deposits, typically 35-40% for investment properties. Owner-occupiers face less stringent requirements but still need to demonstrate adequate income and deposit sources.
Pre-approval processes typically take 5-10 business days and provide conditional lending approval valid for 3-6 months, allowing buyers to make confident offers on properties within their approved price range.
What are the smartest options today depending on whether you want to live in the property, rent it out short-term or long-term, or buy to resell later?
Wellington property investment strategies should align with your specific goals and current market conditions.
For owner-occupiers, standalone homes and modern townhouses in established or rising suburbs offer long-term security and lifestyle value. Areas like Kelburn, Mount Victoria, or quality properties in Karori provide stability with potential for moderate capital growth. Buying slightly below peak prices provides optimal entry timing for personal use.
Short-term rental investors should focus on apartments or houses in central suburbs like Te Aro, Mount Victoria, or the CBD that perform well for Airbnb operations. However, investors must carefully monitor council restrictions and compliance requirements that may affect short-term rental viability in residential areas.
Long-term rental investors should consider townhouses and new builds that offer strong rental yields while complying with Healthy Homes legislation. Focus on affordable, high-demand suburbs that attract steady tenants while providing better depreciation benefits for tax purposes.
Buy-to-resell strategies face challenges in the current market due to recent price declines and moderate growth forecasts. Best opportunities exist in undervalued areas showing consistent quarterly growth like Kelburn, Southgate, or emerging outer suburbs. However, factor in higher holding costs, current interest rates, and moderate appreciation expectations when calculating potential returns.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Wellington's property market presents a complex landscape of opportunities and challenges as of September 2025.
The recent price corrections have created entry opportunities while established premium areas continue to demonstrate resilience, making careful market timing and location selection crucial for success.
Sources
- Opes Partners - Wellington City Property Market
- BambooRoutes - Wellington Price Forecasts
- Opes Partners - Average House Price NZ
- OneRoof - House Price Report August 2025
- Lowe & Co - Wellington Suburb Breakdown
- Lowe & Co - NZ Housing Market Update July 2025
- Opes Partners - Wellington Property Market
- Canstar - Interest Rate Outlook