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Yes, the analysis of Wellington's property market is included in our pack
Wellington's property market offers clear opportunities for buyers and investors as of September 2025, with median house prices at $750,000 citywide and significant variations by suburb and property type.
The capital presents value buying opportunities after recent market corrections, with some suburbs down 25% from peak prices while others show steady growth potential for long-term investment strategies.
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 property prices range from $465,000 in Wellington Central to $1.6 million in Seatoun, with townhouses starting at $645,000 and new builds averaging $449,366 plus land costs.
The market currently favors buyers with undervalued opportunities in city suburbs and emerging growth potential in outer areas like Tawa and Island Bay.
| Property Type | Price Range (NZD) | Key Features |
|---|---|---|
| Houses (existing) | $750,000 median citywide | Various sizes, established suburbs |
| Townhouses | $645,000-$1,295,000 | 2-4 bedrooms, minimal land |
| New Builds | $449,366 avg + land costs | Modern, earthquake compliant |
| Land (central) | $474,000 average | Median 503 sqm, build-ready |
| Apartments | $465,000-$860,000 | CBD proximity, body corp fees |
| Value Suburbs | $540,000-$700,000 | Entry-level, growth potential |
| Premium Suburbs | $1.2m-$1.6m | Established, harbor views |
What property types are available in Wellington and what sizes should you expect?
Wellington's property market offers five main types with distinct size ranges and price points as of September 2025.
Houses remain the dominant option with a median price of $750,000 citywide for existing homes, typically offering 3-4 bedrooms on sections averaging 503 square meters in central areas. Floor areas generally range from 120-200 square meters depending on age and location.
Townhouses present a middle-ground option priced between $645,000-$1,295,000 for 2-4 bedroom configurations with 1-2 bathrooms. These properties typically provide 90-180 square meters of floor space on minimal land, making them popular with first-home buyers and downsizers seeking low-maintenance living.
New builds average $449,366 for the construction component, with buyers needing to add land costs of approximately $474,000 for central Wellington sections. These properties offer modern earthquake compliance, energy efficiency, and customization options but require longer settlement periods.
Apartments range from compact studio units in Wellington Central starting around $465,000 to larger 2-3 bedroom units reaching $860,000 in inner-city locations. Floor areas typically span 45-120 square meters with no land ownership but shared amenities and central locations.
Which Wellington suburbs offer the best value and what features matter most to buyers?
Wellington's suburb selection depends heavily on budget, lifestyle priorities, and investment goals, with clear winners in different categories.
| Suburb Category | Examples | Price Range | Key Features |
|---|---|---|---|
| Premium/Expensive | Seatoun, Oriental Bay, Kelburn | $1.2m-$1.6m | Harbor views, established, prestige |
| Value/Entry-level | Tawa, Island Bay, Lyall Bay | $540,000-$700,000 | Transport links, affordability |
| Emerging/Growth | Totara Park, Wellington Central | $465,000-$749,000 | Price recovery, rental yields |
| Inner City | Mount Victoria, Thorndon | $750,000-$1.2m | CBD proximity, character homes |
| Coastal | Island Bay, Seatoun | $645,000-$1.6m | Beach access, lifestyle appeal |
Critical features for Wellington buyers include robust earthquake ratings due to the city's seismic activity, reliable transport connections especially rail and bus links to the CBD, quality school zones for families, adequate parking given the city's geography, and optimal sun orientation to maximize natural light in Wellington's challenging climate.
Buyers should prioritize suburbs with multiple transport options, as Wellington's terrain can create bottlenecks during peak hours and weather events.
What's the complete budget breakdown for buying Wellington property?
Your all-in Wellington property purchase requires careful budgeting beyond the purchase price, with additional costs adding 3-5% to your total investment.
Purchase prices vary dramatically by location, with median existing houses at $750,000-$860,000 in inner-city areas, new builds requiring $449,366 plus land costs of $474,000-$500,000 for central zones, and value suburbs offering entry points from $540,000-$700,000.
Legal and conveyancing costs typically range $2,000-$3,000 for standard transactions, with complex deals or additional property structures increasing fees. Building inspections and comprehensive reports cost $800-$1,200+ depending on property age and complexity, while professional valuations add $500-$900 to your budget.
New Zealand charges minimal transfer taxes compared to Australian states, with Land Transfer Registration Fees of approximately $80-$160 rather than percentage-based stamp duties. Settlement fees are usually included within conveyancing costs but verify this with your legal representative.
Budget an additional $1,000-$2,000 for miscellaneous costs including insurance setup, utility connections, and any immediate maintenance or repairs identified during inspections.
How should you structure financing for Wellington property purchases?
Wellington property financing follows standard New Zealand lending practices with current market conditions favoring prepared buyers with strong deposits and pre-approval.
Minimum deposits of 20% remain standard for residential investment purchases, meaning $150,000 on a $750,000 property, though first-home buyers may access schemes allowing 10% deposits with additional requirements. Major banks typically approve loans up to 4.5-6 times gross annual income, depending on other debts and expenses.
Current interest rate environment sees fixed rates popular for certainty, with 2-5 year terms common, while floating rates offer flexibility for potential rate decreases. Many buyers choose split mortgages combining both approaches to balance security and flexibility.
Monthly payment calculations on a $600,000 mortgage at current rates of approximately 6.5% result in principal and interest payments around $3,800 monthly, before adding rates, insurance, and any body corporate levies. Ensure your total housing costs including these additional expenses remain below 35-40% of gross household income.
Pre-approval provides negotiating power and settlement confidence, particularly important in Wellington's competitive inner-suburb markets where vendors prefer unconditional offers.
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What are current market prices and price per square meter across Wellington?
| Property Type/Location | Current Price Range | Price per sqm |
|---|---|---|
| New Build Houses | $449,366 average | $3,412/sqm |
| Central Townhouses | $645,000-$1,295,000 | $4,500-$6,500/sqm |
| Wellington Central Apartments | $465,000-$650,000 | $7,000-$9,500/sqm |
| Value Suburb Houses | $540,000-$700,000 | $3,000-$4,200/sqm |
| Premium Suburb Houses | $1.2m-$1.6m | $5,500-$8,000/sqm |
| Central Land Only | $474,000 average | $940/sqm (503 sqm median) |
Recent sales data shows asking prices generally align with achieved prices in the current market, indicating balanced conditions rather than the vendor-favored environment of previous years. Days on market average 30-45 days for well-priced properties in desirable locations.
Price variations reflect Wellington's geography, with harbor-facing and elevated properties commanding premiums, while properties on busy roads or in less desirable orientations trade at discounts to median prices.
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What annual holding costs should Wellington property owners budget?
Wellington property ownership involves multiple annual costs that significantly impact investment returns and affordability calculations.
Mortgage interest represents the largest expense at current rates of 6-7% annually, meaning $42,000-$49,000 yearly on a $700,000 loan before principal repayments. Property insurance varies by type and location, with houses typically costing $1,200-$2,000 annually, while apartments and townhouses may cost less due to shared insurance arrangements.
Wellington City Council rates increased 10.6% for 2025/26, with standard residential properties averaging $3,000-$4,000 annually depending on capital value and location. Body corporate levies for apartments and some townhouses typically range $1,300-$2,200 annually, covering shared area maintenance, insurance, and management.
Maintenance costs require budgeting approximately 1% of property value annually, equating to $7,500 on a $750,000 property for regular upkeep, repairs, and improvements. Professional property management services charge 8-10% of rental income if you're leasing the property.
Vacancy risk in Wellington's rental market typically requires modeling 2-4 weeks annually unless pursuing short-term accommodation strategies, which face increasing regulatory scrutiny.
Which investment strategy works best for different Wellington property goals?
Wellington property investment success depends heavily on matching strategy to personal goals, budget constraints, and risk tolerance.
1. **Owner-occupier strategy** works best with undervalued city suburbs around the $750,000 median, providing lifestyle benefits while building equity in areas likely to recover from recent price corrections.2. **Long-term rental investment** generates gross yields of 3-5% in city and inner suburbs, increasing to 4-6% in outer suburbs and value areas, with lower management requirements than short-term alternatives.3. **Short-term rental (Airbnb)** offers higher potential yields in central coastal areas but faces increasing regulatory restrictions and higher management demands requiring active involvement.4. **Renovate-and-resell projects** target lower-priced, undervalued suburbs with recent price drops, particularly Wellington Central and Mount Victoria, where improvements can capture upside potential.5. **New build investment** provides depreciation benefits for tax purposes, lower maintenance costs, and modern compliance standards, though requires higher initial capital and longer development timeframes.Key risks across all strategies include earthquake damage potential requiring appropriate insurance, vacancy periods in economic downturns, body corporate fee increases for multi-unit properties, and regulatory changes affecting rental property requirements.
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Which Wellington suburbs are expensive, emerging, or offer the best value?
Wellington's suburb landscape provides clear distinctions between premium, emerging, and value categories based on current pricing and growth potential.
Premium suburbs including Seatoun ($1.6 million median), Oriental Bay, Kelburn, Thorndon, and Roseneath command the highest prices but have experienced significant corrections, with Seatoun down 25% from 2022 peaks. These areas offer prestige addresses, harbor views, and established amenities but limited growth potential in the near term.
Emerging suburbs like Totara Park show the fastest current growth at approximately 3% annually, while Wellington Central and Mount Victoria present recovery opportunities after substantial recent price drops of 16.1% and similar percentages respectively.
Value suburbs including Tawa ($549,000-$749,000), Island Bay ($645,000-$945,000), and Lyall Bay provide entry-level opportunities with steady uptrend potential. These areas offer better affordability while maintaining transport links and community amenities essential for long-term growth.
Outer suburbs like Porirua and Upper Hutt provide the most affordable entry points but require longer commutes and may have limited capital growth potential compared to closer-in alternatives.
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 smartest Wellington property purchases right now?
Wellington City itself presents the strongest buying opportunity as of September 2025, with the market approximately 14% below long-term fair value creating prime entry conditions for strategic buyers.
Entry-level opportunities in Tawa, Island Bay, and Lyall Bay provide excellent prospects for both owner-occupiers and investors seeking steady rental yields of 4-5% while positioning for medium-term capital growth as the market recovers.
Wellington Central and Mount Victoria offer exceptional value with strong rental yields of 5-6% and significantly discounted property prices following recent corrections, making them ideal for investors comfortable with inner-city rental management.
New build townhouses in outer growth areas provide modern living standards, earthquake compliance, and potential for steady capital appreciation while offering rental yields in the 4-5% range with lower maintenance requirements.
Avoid premium suburbs like Seatoun and Oriental Bay unless purchasing for lifestyle reasons, as these areas face continued price pressure and offer limited rental yield potential relative to their purchase prices.
How have Wellington property prices and yields changed over recent years?
Wellington's property market has experienced significant volatility over the past five years, with dramatic growth followed by substantial corrections creating current opportunities.
Five-year trends show median prices rising from approximately $395,000 in 2015 to $750,000 in 2025, representing an average annual increase of 6.76%, though this growth was heavily concentrated in the 2020-2022 period with subsequent corrections.
One-year changes reveal cooling conditions with many suburbs experiencing price drops of 10-25% from peak levels, particularly premium areas like Seatoun down 25% and Wellington Central dropping 16.1% year-on-year as of August 2025.
Rental yields have improved as purchase prices declined while rents remained relatively stable, with value suburbs now offering 4-6% gross yields compared to 3-4% during peak price periods. Premium suburbs maintain lower yields of 3-4% due to their higher purchase prices relative to achievable rents.
The correction has restored affordability for many buyers while creating investment opportunities with improved yield profiles compared to the overheated market of 2021-2022.
What's the outlook for Wellington property over the next 1, 5, and 10 years?
Wellington property market forecasts suggest a recovery trajectory with varying timelines depending on location and property type.
One-year outlook indicates continued market stabilization with modest price growth expected as interest rates potentially moderate and buyer confidence returns. Undervalued city suburbs likely to show early recovery signs while premium areas may require longer adjustment periods.
Five-year forecasts suggest steady appreciation for well-located properties as Wellington's fundamentals remain strong, including government employment stability, infrastructure development, and constrained land supply. Annual growth likely to moderate to 3-5% compared to historical averages as the market matures.
Ten-year projections remain positive for Wellington property due to planned infrastructure investments including transport improvements, ongoing housing supply constraints, and the city's role as New Zealand's capital supporting long-term demand fundamentals.
Infrastructure developments including potential rapid transit improvements and earthquake strengthening programs should support property values while ensuring Wellington remains an attractive location for residents and investors.
Climate change considerations may influence coastal property values over longer periods, though Wellington's elevated geography provides some protection compared to other coastal cities.
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How does Wellington compare with other coastal capital cities like Christchurch, Hobart, and Dunedin?
Wellington's property market positioning among similar coastal capitals reveals both competitive advantages and relative challenges as of September 2025.
| City | Median House Price | Rental Yield Range | Growth Prospects |
|---|---|---|---|
| Wellington | $750,000 | 3-6% | Recovery mode, undervalued |
| Christchurch | $650,000-$700,000 | 4-7% | Steady growth, rebuilt city |
| Dunedin | $550,000-$600,000 | 5-7% | Student demand, affordability |
| Hobart | $650,000-$750,000 AUD | 4-6% | Limited supply, tourism |
Wellington's prices typically sit slightly higher than Christchurch and Dunedin but offer comparable value to Hobart when considering currency differences. The capital's rental yields compete effectively, particularly in value suburbs where 4-6% returns match or exceed other coastal capitals.
Growth prospects favor Wellington due to its current undervaluation, with the market approximately 14% below fair value providing upside potential as conditions normalize. Christchurch offers steadier but potentially lower growth from a more fairly valued starting point.
Wellington's advantages include government employment stability, cultural amenities, and constrained geography limiting supply, while challenges include earthquake risk, limited land availability, and higher living costs compared to other centers.
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 compelling opportunities for buyers and investors as of September 2025, with the city trading approximately 14% below fair value after recent corrections.
Value suburbs like Tawa, Island Bay, and Wellington Central offer the best combination of affordability, rental yields, and medium-term growth potential for strategic property investors.
Sources
- OneRoof Wellington Townhouse Listings
- Real Estate Wellington Residential Sales
- WiseMove Wellington Expensive Suburbs
- Opes Partners Wellington Property Market
- Mortgages.co.nz House Building Costs
- OneRoof House Price Report August 2025
- Wellington City Council Rates Information
- Reddit Body Corporate Fees Discussion