What's the property market outlook in Wellington?

Authored by the expert who managed and guided the team behind the New Zealand Property Pack

Yes, the analysis of Wellington's property market is included in our pack

Who is the author of this content?

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.

How this content was created 🔎📝

At BambooRoutes, we explore the Wellington real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Wellington, Auckland, and Christchurch. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What are current property prices like across different Wellington suburbs?

Wellington property prices vary dramatically across suburbs, with luxury areas commanding over $1.6 million while inner-city apartments start around $400,000.

As of September 2025, Wellington City's average property price sits at $882,876, reflecting a 6.55% decline from the previous year. The most expensive suburb, Seatoun, commands premium prices at $1,689,850 for waterfront properties and established homes. At the opposite end, Wellington Central offers the most affordable entry point at $422,350, primarily consisting of apartments and compact living spaces.

Mid-range suburbs like Upper Hutt provide family-friendly options at $725,456, while many inner-city areas have experienced significant corrections. Wellington Central specifically saw property values drop 16.1% annually to reach $465,000, creating opportunities for first-time buyers and investors seeking inner-city exposure.

The suburb-level price variations reflect Wellington's diverse housing stock, from heritage villas in established areas to modern apartments in the central business district. Location premiums remain strong for suburbs with harbor views, proximity to good schools, and reliable transport connections.

It's something we develop in our New Zealand property pack.

How have property prices changed over the past year, and what's the average growth rate?

Wellington property prices have declined significantly over the past 12 months, with citywide values falling 5.5% compared to June 2024.

The current market represents a sharp reversal from Wellington's long-term growth trajectory. While the city's 10-year average annual growth rate stands at 6.76%, recent performance shows flat or negative growth across most suburbs. This dramatic shift reflects broader economic pressures including higher interest rates, stricter lending criteria, and reduced buyer confidence.

Most Wellington suburbs experienced price corrections throughout 2025, with some areas like Wellington Central seeing double-digit declines of 16.1%. Only isolated pockets such as Johnsonville have shown resilience, maintaining relative stability due to their appeal to first-home buyers seeking affordable options with good transport links.

The price correction has been most pronounced in previously overheated segments, including luxury homes and investment properties. This adjustment period is bringing Wellington property values closer to historical norms relative to local incomes and rental yields.

Market analysts expect this correction phase to continue through late 2025 and early 2026, with potential stabilization dependent on interest rate movements and improved economic sentiment.

What's happening with the number of houses being listed for sale in Wellington right now?

Wellington's property listings have increased substantially in 2025, with over 1,100 homes available on the market at peak periods.

The surge in listings represents a significant shift from the seller's market conditions of previous years. Property owners are bringing more homes to market due to various factors including job relocations, financial pressures from higher mortgage rates, and investor exits from the rental market following regulatory changes.

This increased supply is creating a buyer's market environment where purchasers have more choice and negotiating power. The higher inventory levels are contributing to longer selling times and downward pressure on prices across most Wellington suburbs.

Unlike previous market cycles where low inventory drove price growth, the current oversupply situation is expected to persist through the remainder of 2025. Owner exits have slowed compared to earlier in the year, but the accumulated inventory continues to favor buyers over sellers.

Real estate agents report that quality properties in desirable locations still attract multiple inquiries, but the overall market dynamic has clearly shifted toward buyers having greater leverage in negotiations.

How quickly are homes selling compared to last year?

Wellington homes are taking significantly longer to sell in 2025, averaging 62 days on the market compared to much faster sales in 2024.

This represents a 50% increase in selling times year-on-year, reflecting the dramatic shift from a seller's market to buyer's market conditions. Some Wellington regions are experiencing even longer delays, with properties averaging 84-105 days to sell compared to 69 days in the same period last year.

The extended selling times result from multiple factors including increased competition between sellers, buyer hesitancy due to economic uncertainty, and more selective purchasing decisions. Buyers are taking time to inspect multiple properties and negotiate more aggressively on price and conditions.

Properties in premium locations or unique offerings may still sell relatively quickly, but standard family homes and investment properties are experiencing the most significant delays. The slower pace benefits buyers who can conduct thorough due diligence without time pressure.

Real estate professionals expect selling times to remain elevated while inventory levels stay high and buyer confidence gradually rebuilds through improved affordability conditions.

What's the current average rental yield for Wellington properties?

Wellington rental yields currently range between 4.09% and 4.55% for houses and townhouses, remaining above New Zealand's national median despite recent rental price declines.

These yields represent gross returns before accounting for property management costs, maintenance, and vacancy periods. Wellington's rental yields have traditionally been competitive due to strong tenant demand from government workers, students, and professionals, though this advantage is moderating as rental supply increases.

The yield calculation reflects both property purchase prices and rental income levels. While property prices have fallen 5.5% citywide, rental prices have declined 7.7% to a median weekly rent of $600, creating a complex dynamic for yield calculations. Properties purchased at current lower prices may achieve better yields than those bought at peak prices.

Investors focusing on rental yields should consider Wellington's diverse suburb performance, with some areas maintaining stronger rental demand than others. Properties near public transport, universities, and employment centers typically achieve yields closer to the higher end of the range.

It's something we develop in our New Zealand property pack.

How have rental prices moved over the last year, and where are they headed?

Wellington rental prices have dropped significantly in 2025, with median weekly rents falling 7.7% year-on-year to $600, reaching the lowest level since 2022.

This rental decline stems from a substantial shift in supply and demand dynamics. Rental supply increased 34% annually while tenant demand dropped 16%, creating an oversupplied market that favors renters over landlords. Many property investors have exited the market due to regulatory changes and financing pressures, adding to available rental stock.

The rental market correction is most pronounced in inner-city areas and apartment complexes, where increased supply has given tenants more choice and negotiating power. Landlords are offering incentives such as reduced rents, free weeks, or improved property conditions to attract and retain tenants.

Looking ahead, rental prices are expected to remain subdued through late 2025 and early 2026. The combination of continued high supply levels, economic uncertainty affecting tenant affordability, and potential further investor exits suggests rents may stabilize at current levels rather than recover quickly.

Rental market recovery will likely depend on improved economic conditions, population growth, and stabilization of the property investment sector following regulatory adjustments.

What's the level of housing supply versus demand in Wellington right now?

Wellington's housing market is significantly oversupplied as of September 2025, with both sales and rental markets showing clear imbalances between supply and demand.

The sales market demonstrates oversupply through increased listings of over 1,100 properties, extended selling times averaging 62 days, and declining prices across most suburbs. This represents a complete reversal from the undersupply conditions that drove rapid price growth in previous years.

The rental market shows even more dramatic oversupply indicators, with rental stock increasing 34% while tenant demand fell 16% annually. This imbalance has driven median weekly rents down 7.7% to $600, creating a tenant-favorable environment with improved choice and negotiating power.

Multiple factors contribute to the oversupply situation including investor exits due to regulatory changes, economic uncertainty prompting relocations, and slower population growth. The excess supply is most evident in inner-city apartments and investment-grade properties.

The oversupply condition benefits buyers and renters but challenges property owners and investors who face longer sale periods, reduced rents, and limited capital growth prospects until market balance improves.

How are interest rates and mortgage affordability affecting Wellington buyers?

Wellington mortgage affordability has improved modestly following OCR reductions since mid-2025, though challenges remain due to strict bank lending criteria and elevated property prices relative to incomes.

The Reserve Bank's decision to lower official interest rates has provided some relief to buyers, reducing monthly mortgage payments and improving purchasing power. This policy shift has contributed to increased buyer confidence and more active market participation than earlier in 2025.

However, banks continue to apply stringent lending criteria including higher deposit requirements, thorough income verification, and conservative debt-to-income ratios. First-home buyers particularly face challenges meeting these requirements despite government assistance programs.

The combination of lower interest rates and reduced property prices creates a more favorable affordability environment than existed in 2024. Buyers with strong financial positions can access better value, while those with limited deposits or irregular incomes still face significant barriers.

Further interest rate reductions could improve affordability substantially, but lending standards are likely to remain conservative as banks manage risk in an uncertain economic environment.

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.

Are there any major infrastructure projects or developments planned in Wellington that could impact property values?

Wellington has several significant infrastructure projects underway that should provide long-term property value support, despite short-term construction disruptions.

The major initiative is the $116 million Golden Mile revitalization project, transforming central city streets with new underground infrastructure, improved bus reliability, and enhanced public amenities. This comprehensive upgrade targets Lambton Quay, Willis Street, Manners Street, and Courtenay Place, creating a more attractive urban environment for residents and businesses.

Additional projects include substantial upgrades to public parks, water infrastructure, and transport connections throughout the Wellington region. These improvements are designed to support population growth and enhance the city's livability, particularly in inner suburbs that have experienced recent price corrections.

The infrastructure investments are expected to boost long-term property values in affected areas after initial construction disruptions subside. Properties within walking distance of Golden Mile improvements may see particular benefit as the area becomes more pedestrian-friendly and commercially vibrant.

While these projects create short-term inconvenience, they represent significant public investment in Wellington's future, potentially supporting property market recovery once economic conditions improve and infrastructure benefits become apparent to buyers and renters.

What are the most attractive suburbs for first-home buyers, investors, and families in Wellington?

Buyer Type	Recommended Suburbs	Key Attractions
First-Home Buyers	Johnsonville, Tawa, Lower Hutt	Affordable prices, transport links, growth potential
Property Investors	Johnsonville, Newtown, Outer Wellington	Steady rental yields, tenant demand, value opportunities
Young Families	Hataitai, Island Bay, Lower Hutt	Good schools, parks, community facilities
Professionals	Wellington Central, Mount Victoria, Thorndon	Commute convenience, urban lifestyle, amenities
Retirees	Island Bay, Seatoun, Karori	Peaceful environment, medical access, community

What do experts and analysts predict for Wellington's property market over the next 1-2 years?

Property market experts predict flat to slightly negative price movements for Wellington over the next 12-24 months, with potential for mild recovery if interest rates remain stable.

The consensus forecast reflects continued oversupply conditions, economic uncertainty, and the time required for current inventory levels to normalize. Most analysts expect the price correction phase to continue through late 2025 and early 2026, with gradual stabilization possible in the second half of 2026.

Key factors that could accelerate recovery include further interest rate reductions, improved economic confidence, and population growth from immigration or job creation. Conversely, additional regulatory changes, economic downturn, or significant interest rate increases could extend the correction period.

The rental market is expected to remain buyer-favorable with subdued rent growth until supply and demand rebalance. Investors should prepare for continued yield pressure while buyers may find improved value opportunities, particularly in previously expensive suburbs experiencing correction.

It's something we develop in our New Zealand property pack.

What risks could drag Wellington's property market down, and what opportunities could push it up?

**Market Risks:**1. **Prolonged oversupply** - Continued high inventory levels could extend price weakness beyond current forecasts2. **Population outflows** - Economic uncertainty driving residents to leave Wellington for other cities or countries3. **Stricter banking criteria** - Further tightening of mortgage lending standards reducing buyer access4. **Additional regulations** - New capital gains taxes or tenancy laws deterring property investment5. **Economic recession** - Broader economic downturn reducing employment and buyer confidence**Market Opportunities:**1. **Infrastructure investment benefits** - Golden Mile and other projects boosting central city appeal over 2-3 years2. **Interest rate environment** - Further OCR reductions improving affordability for buyers and investors3. **Value correction opportunities** - Previously expensive suburbs now accessible to more buyers4. **Government policy support** - Potential first-home buyer incentives or investment encouragement5. **Regional migration** - Economic growth attracting residents from other New Zealand regions6. **International interest** - Currency weakness making Wellington property attractive to foreign buyers

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. Opes Partners - Wellington City Property Market
2. OneRoof - House Price Report August 2025
3. Trade Me - Rental Pulse Report
4. Lowe & Co - New Zealand Housing Market Update July 2025
5. Tommy's Real Estate - Wellington Market Update June 2025
6. Transport Projects - Courtenay Place Revitalisation
7. Wellington City Council - Current Projects
8. Opes Partners - Wellington Rental Yields