What is the average rent in Wellington?

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BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Wellington. If you'd like to learn more about us, you can check our presentation page.

What's the current average rent in Wellington across the main property types?

As of September 2025, Wellington's median weekly rent ranges from NZ$600 to NZ$680 across all property types, representing an 8% year-on-year decrease from the previous year's peak of NZ$732 per week.

Studio apartments command the lowest rents at NZ$400-$500 per week, while 1-bedroom apartments typically rent for NZ$460 median weekly, with a range between NZ$399 at the lower quartile and NZ$525 at the upper quartile. Two-bedroom apartments show stronger rental performance with a median of NZ$635 per week, extending up to NZ$715 for premium units.

Townhouses present attractive rental yields with 2-bedroom properties typically commanding NZ$595-$650 per week, while the average townhouse rent sits at NZ$650 weekly as of June 2025. Standalone houses demonstrate the highest rental rates, with 3-bedroom properties achieving NZ$680-$695 per week median rent, and larger 4+ bedroom homes commanding approximately NZ$900 per week, though this represents a 9% year-on-year decrease.

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How do rents differ between central Wellington and surrounding suburbs?

Central Wellington commands significantly higher rents compared to surrounding suburbs, with premium locations like Te Aro, Mt Victoria, and Thorndon showing the steepest rental rates due to their proximity to the CBD and concentration of modern apartments.

In central Wellington, particularly Mt Victoria, studio apartments start at NZ$435 per week, while 1-bedroom units begin at NZ$500 weekly. Te Aro and CBD areas predominantly feature apartment-style accommodations that attract young professionals willing to pay premium rates for convenience and lifestyle amenities.

Surrounding suburbs like Tawa, Porirua, and Upper Hutt offer substantially more affordable rental options, particularly appealing to families seeking value and space. Porirua shows median room rates of approximately NZ$265-$330 per room in shared accommodation, with 3-bedroom shared houses offering rooms at around NZ$265 per room - significantly lower than central Wellington equivalents.

The rental differential between central and suburban areas can represent savings of 30-40% for tenants willing to commute, while still maintaining access to Wellington's employment and cultural centers through established transport links.

What's the typical rent per square meter for different property sizes?

Wellington's rent per square meter varies significantly based on property type and location, with smaller apartments commanding higher rates per square meter compared to larger standalone houses.

Houses across Wellington average NZ$8,000-$9,500 per square meter based on 2024 city averages, while apartments demonstrate a clear location-based pricing structure. City center apartments typically cost around NZ$6,500 per square meter, compared to suburban apartments at approximately NZ$4,460 per square meter.

The inverse relationship between property size and cost per square meter means larger homes offer better value on a per-square-meter basis, while compact central apartments carry premium pricing due to location convenience and infrastructure access.

This pricing structure reflects Wellington's urban density challenges and the premium placed on central locations, making suburban properties more attractive for families and investors seeking better space-to-cost ratios.

What does the total monthly cost look like once you include fees, taxes, and ongoing expenses?

The total monthly cost for Wellington rental properties extends well beyond the advertised weekly rent, incorporating rates increases, taxes, insurance, and various ongoing expenses that can add 25-40% to the base rental cost.

Wellington City has implemented a 12% rates and taxes increase for the 2025/26 period, directly impacting landlords and potentially influencing rental pricing decisions. Rental income taxation applies at progressive rates of 17.5-33% depending on the landlord's total income bracket, significantly affecting net returns.

Landlords typically factor in property management fees of 7-10% of rental income, landlord insurance costs, regular maintenance expenses, and body corporate fees for apartment properties. These combined expenses can add NZ$150-$300 per month depending on property type and management requirements.

For tenants, the advertised rent represents the base cost, but they should budget for utilities, internet, and potential rental insurance, while landlords must calculate net yields after accounting for all expenses and tax obligations to determine actual investment returns.

How do mortgage costs compare to rental income for common property types?

Mortgage payments in Wellington's current market typically exceed rental income for most property types, creating negative gearing scenarios for new property investors and demonstrating that renting remains more affordable than buying for most first-home buyers.

A mortgage on Wellington's lowest quartile house of approximately NZ$435,000 at current 2-year fixed rates of 3.46% results in weekly payments of around NZ$370, before adding essential costs like rates (approximately NZ$70 per week), insurance, and maintenance expenses.

Combined mortgage and expense costs often total NZ$440-$500 per week, while median rental income ranges from NZ$600-$680 weekly, creating a gap that new investors must bridge through capital contributions. This calculation excludes the substantial deposit requirements and transaction costs associated with property purchases.

Wellington's net rental yields of approximately 3.4% after expenses and taxes mean investors rely heavily on capital appreciation rather than immediate cash flow returns, making the investment case dependent on long-term market recovery expectations extending to 2031.

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What are example rental prices today for apartments, townhouses, and standalone houses?

Wellington's September 2025 rental market shows clear pricing tiers across different property types, with apartments offering the most accessible entry points and standalone houses commanding premium rates.

Who are the main renter profiles in Wellington right now, and what are they looking for?

Wellington's rental market serves five distinct tenant profiles, each with specific preferences that drive demand in different property segments and locations across the city.

Young professionals represent the largest segment, predominantly seeking modern apartments in central locations like Te Aro and the CBD, prioritizing convenience, proximity to work, and urban lifestyle amenities. This demographic typically occupies 1-2 bedroom apartments and drives demand for premium central Wellington properties.

Students concentrate in affordable shared housing options in Mt Cook and Newtown, seeking cost-effective accommodation with good transport links to universities and educational institutions. Government and corporate contractors prefer furnished short-term rentals near the CBD, willing to pay premium rates for flexibility and convenience during project-based work assignments.

Families focus on larger homes in suburban areas like Tawa and Porirua, prioritizing value, space, and quieter residential environments over central location. Short-term travelers and temporary residents drive demand for Airbnb-style accommodations in the CBD and waterfront areas, seeking furnished, serviced accommodation options.

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What are the vacancy rates across property types and neighborhoods?

Wellington's rental market currently experiences an oversupply situation with 1,383 homes available for rent compared to the 5-year average of 999 properties, creating longer vacancy periods and increased tenant negotiating power.

Vacancy periods have extended beyond historical norms, contributing to static rent growth and forcing landlords to be more competitive with pricing and property presentation. This oversupply situation particularly affects studio apartments and city fringe properties where tenant choice has expanded significantly.

Airbnb properties show approximately 67% occupancy rates, indicating that short-term rental markets face similar supply pressures, though peak periods still generate strong returns for well-positioned properties.

Desirable family suburbs maintain lower vacancy rates due to consistent demand from families seeking stable, long-term accommodation, while central Wellington studios and smaller apartments experience higher availability as young professionals have expanded choice and bargaining power in the current market.

What's the difference in profitability between short-term rentals and long-term rentals?

Short-term rentals in Wellington can generate significantly higher gross returns than long-term rentals but require substantially more management effort and carry higher operational risks and costs.

Average Wellington Airbnb properties generate approximately NZ$40,000 annually with an average daily rate of NZ$171 and 67% occupancy, translating to gross monthly income of around NZ$3,373. This represents potentially double the income of equivalent long-term rentals, particularly for well-located central properties during peak periods like December.

Long-term rentals offer stable yields of 4.1-4.6% with lower turnover costs, reduced hands-on management requirements, and more predictable cash flow patterns. The regulatory environment for monthly rentals remains less complex compared to short-term accommodation requirements.

Short-term rental profitability depends heavily on location, property presentation, and active management, while long-term rentals provide consistent returns with lower operational overhead. Peak months for short-term rentals can generate exceptional returns, but off-peak periods may result in significantly lower occupancy and income volatility.

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 the current rental yields by property type and location?

Wellington's rental yields in September 2025 remain stable at 4.0-4.6% gross across most property types, positioning the city as one of New Zealand's higher-yielding major centers compared to Auckland's 3.5% and on par with Christchurch's 4.1%.

Apartments deliver gross yields of 4.08-4.65% depending on location and configuration, with smaller central units often achieving the higher end of this range due to lower purchase prices relative to rental income. Houses and townhouses generate similar yields of 4.09-4.64%, though larger properties may show slightly lower yields due to higher capital values.

Specialized dual-key apartments and high-yield configurations can achieve up to 6% gross yields, representing attractive opportunities for investors seeking maximum rental returns. These properties typically feature separate living areas that can be rented independently, maximizing income potential.

Location significantly impacts yields, with suburban properties often delivering better percentage returns due to lower purchase prices, while central properties command higher absolute rents but may show lower yields due to premium capital values.

How have average rents and yields changed compared to one year ago and five years ago?

Wellington's rental market has experienced significant changes over both one-year and five-year timeframes, with rents declining 8% year-on-year while yields have remained relatively stable despite broader market volatility.

Rents have fallen from NZ$732 per week in 2024 to approximately NZ$673 per week in September 2025, representing the 8% year-on-year decline that reflects oversupply conditions and reduced tenant competition. Property prices have decreased 25% from their peak levels, with recovery not expected until 2031 according to current forecasts.

Rental yields have shown remarkable stability, maintaining the 4.1-4.65% range compared to approximately 4.2% in late 2024, indicating that rent and price declines have moved in relative proportion. Over the 15-year period, Wellington house prices grew 86% while yields remained stable, though net yields have declined due to increased costs and tax obligations.

The five-year perspective shows Wellington's resilience as a rental market, with yields consistently outperforming other major New Zealand cities even during market downturns, supporting the city's position as a defensive investment market for rental property investors.

What are the smartest choices for property investors today, and how do Wellington's rents and yields compare with other similar cities now and in future forecasts of 1, 5, and 10 years?

Smart property investment choices in Wellington's current market focus on undervalued suburbs with strong transport links and consistent rental demand, particularly targeting family homes near quality schools and dual-income properties that maximize rental yields.

Investors should prioritize undervalued areas like Lower Hutt, Upper Hutt, and Porirua where property prices have declined more significantly than central Wellington, creating opportunities for capital growth recovery. Family homes near top schools in Kelburn, Karori, and Thorndon offer the most stable rental demand and long-term appreciation potential.

Wellington's competitive position shows recovery to peak prices expected by 2031, with yields projected to remain stable at 4.0-4.5% gross throughout the forecast period. Rental demand is likely to strengthen as housing supply growth plateaus and population increases, particularly in the government and professional services sectors.

The smartest investment strategy combines undervalued suburban properties for capital growth with high-yield central properties for cash flow, adapting to supply and demand trends while maintaining Wellington's position as New Zealand's highest-yielding major city for rental property investment.

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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.

Sources

1. Trade Me - How Much is Rent in NZ
2. Trade Me - Rental Pulse Report
3. Property Plus - Wellington Rental Market Trends
4. Just Property - Wellington Rental Markets Guide
5. BambooRoutes - Wellington Real Estate Market
6. NGPM - Wellington Property Management
7. Wise Move - Cost of Living in Wellington
8. Wellington City Council - Rates Explained 2025-26
9. Global Property Guide - New Zealand Taxes
10. Interest.co.nz - Rent or Buy Analysis