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
Wellington's property market is stabilising after a significant correction, with prices no longer falling and modest growth reappearing in early 2026.
Whether you're looking at the wider metro area or Wellington City itself, understanding current prices and where they're headed is essential for smart property decisions.
This blog post is constantly updated to reflect the latest Wellington housing prices, forecasts, and neighborhood trends.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Wellington.
Insights
- Wellington metro median property value sits around NZ$778,000 as of early 2026, while Wellington City proper averages closer to NZ$912,000.
- Property prices in Wellington grew approximately 1.8% year-on-year heading into 2026, marking a shift from the sharp post-2021 declines.
- Standalone houses in Wellington typically lead price recoveries due to land scarcity, with townhouses following as an affordability alternative.
- The Reserve Bank cut the Official Cash Rate to 2.25% in late 2025, improving borrowing power for Wellington buyers compared to 2024.
- Wellington's job market is uniquely sensitive to government employment decisions, which can soften buyer confidence more than in other cities.
- Seatoun remains Wellington City's most expensive suburb, while Wellington Central offers more affordable entry points for apartment buyers.
- Insurance and seismic risk pricing continues to weigh on Wellington apartment values, particularly in older buildings and hillside zones.
- Building consents in the Wellington region have been increasing, gradually adding supply especially in the townhouse segment.
- Wellington rents have been soft recently, with Wellington City average rents down year-on-year to September 2025.
- Transport improvements through Let's Get Wellington Moving could shift which suburbs become "winners" over the next five to ten years.
What are the current property price trends in Wellington as of 2026?
What is the average house price in Wellington as of 2026?
As of early 2026, the average house price in the wider Wellington metro area (including Wellington City, Porirua, Lower Hutt, and Upper Hutt) sits around NZ$778,000 (approximately US$470,000 or €430,000), while Wellington City alone averages closer to NZ$912,000 (approximately US$550,000 or €505,000).
Price per square meter in Wellington falls between NZ$6,200 and NZ$7,100 (US$3,750 to US$4,300 or €3,450 to €3,950), though CBD apartments often reach NZ$8,000 to NZ$10,500 per square meter due to smaller floor areas.
The realistic price range covering roughly 80% of Wellington property purchases spans NZ$550,000 to NZ$1,200,000 (US$330,000 to US$725,000 or €305,000 to €670,000).
How much have property prices increased in Wellington over the past 12 months?
Property prices in Wellington increased by approximately 1.8% to 2% over the past 12 months heading into early 2026, a notable shift from the sharp post-2021 declines.
Across different property types, price increases ranged from roughly 1% to 3%, with standalone houses in desirable suburbs showing stronger gains than apartments with high body corporate costs.
The most significant factor driving this modest recovery was the drop in interest rates, as the Reserve Bank cut the OCR to 2.25% by late 2025, improving borrowing capacity for buyers.
Which neighborhoods have the fastest rising property prices in Wellington as of 2026?
As of early 2026, the top three Wellington neighborhoods with fastest rising property prices are Kelburn, Seatoun, and Petone, each combining scarce supply with strong owner-occupier demand.
These neighborhoods achieved annual price growth of around 3% to 5%, outpacing the broader Wellington average due to limited listings and consistent buyer interest.
The main driver is their combination of lifestyle appeal, good school zones, and constrained land supply, meaning buyers competing for available homes push prices up faster.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Wellington.
We have made this infographic to give you a quick and clear snapshot of the property market in New Zealand. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which property types are increasing faster in value in Wellington as of 2026?
As of early 2026, Wellington property types rank by appreciation: standalone houses first, followed by townhouses, then apartments, with houses leading because buyers prefer land ownership in supply-constrained suburbs.
Standalone houses are appreciating at approximately 2% to 4% annually, outperforming townhouses at 1.5% to 3% and apartments which show mixed results depending on building quality.
The main reason houses outperform is Wellington's geography, where hills and coastline limit new land for development, making existing houses increasingly scarce and valuable.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much do properties cost in Wellington?
- How much should you pay for a house in Wellington?
- How much should you pay for an apartment in Wellington?
- How much should you pay for a townhouse in Wellington?
- How much should you pay for a studio in Wellington?
What is driving property prices up or down in Wellington as of 2026?
As of early 2026, the top three factors driving Wellington property prices are lower interest rates compared to 2024, supply constraints in established suburbs, and the city's sensitivity to public sector employment.
The factor with strongest upward pressure is the drop in interest rates, as the Reserve Bank's OCR cut to 2.25% directly improves how much buyers can borrow and afford across all Wellington suburbs.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Wellington here.
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What is the property price forecast for Wellington in 2026?
How much are property prices expected to increase in Wellington in 2026?
As of early 2026, Wellington property prices are expected to increase by approximately 4% to 5% over the calendar year, building on late 2025 stabilisation.
Analyst forecasts range from about 3% on the conservative end to around 6% in optimistic scenarios, reflecting uncertainty about employment and buyer confidence.
The main assumption underlying most forecasts is that interest rates will remain relatively low throughout 2026, keeping mortgage affordability better than 2023-2024.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Wellington.
Which neighborhoods will see the highest price growth in Wellington in 2026?
As of early 2026, Wellington neighborhoods expected to see highest price growth are Kelburn, Thorndon, Mount Victoria, Seatoun, and Petone, each offering lifestyle appeal and limited housing stock.
These neighborhoods are projected to achieve 5% to 7% growth in 2026, outperforming the broader average due to consistent demand from owner-occupiers with strong purchasing power.
The primary catalyst is returning buyer confidence as interest rates stabilise, with premium suburbs benefiting first because their buyers are less rate-sensitive.
Kilbirnie could surprise with higher-than-expected growth, as improving amenities, airport proximity, and relative affordability attract both first-home buyers and investors.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Wellington.
What property types will appreciate the most in Wellington in 2026?
As of early 2026, standalone houses are expected to appreciate most in Wellington, followed by well-located townhouses, while apartments will see more selective performance.
Standalone houses are projected to appreciate 4% to 6%, outperforming townhouses at 3% to 5% and apartments ranging from flat to 3% depending on quality and location.
The main trend driving house appreciation is persistent land scarcity in desirable suburbs, combined with buyer preferences for properties avoiding body corporate fees and complex insurance.
Apartments, particularly smaller units in older buildings, are expected to underperform as rising insurance and earthquake strengthening requirements weigh on ownership costs.
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.
How will interest rates affect property prices in Wellington in 2026?
As of early 2026, lower interest rates are providing meaningful support to Wellington property prices, as the Reserve Bank's 2025 cuts improved borrowing capacity across the region.
The OCR sits at 2.25% following the November 2025 cut, with mortgage rates expected to remain stable through 2026 as the Reserve Bank has signaled a pause in easing.
In Wellington, a 1% change in mortgage rates typically shifts borrowing capacity by 10% to 12%, translating to similar price impacts depending on rate direction.
You can also read our latest update about mortgage and interest rates in New Zealand.
What are the biggest risks for property prices in Wellington in 2026?
As of early 2026, the three biggest risks for Wellington property prices are a government employment shock affecting the large public sector workforce, interest rates not falling as hoped, and rising insurance and body corporate costs impacting apartments.
A public sector employment shock has the highest probability, as government budget pressures could quickly dampen buyer confidence in a city where many households depend on government-related incomes.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Wellington.
Is it a good time to buy a rental property in Wellington in 2026?
As of early 2026, buying a rental property in Wellington is a selective opportunity rather than an obvious win, requiring careful analysis of rental yields and ongoing costs.
The strongest argument for buying now is that prices are no longer falling sharply, and lower interest rates make holding costs more manageable than in 2023-2024.
The strongest argument for waiting is that Wellington rents have been soft or falling, meaning gross yields remain thin in many suburbs, and overpaying in premium areas will likely result in negative cashflow for years.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Wellington.
You'll also find a dedicated document about this specific question in our pack about real estate in Wellington.
Buying real estate in Wellington can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Wellington?
What is the 5-year property price forecast for Wellington as of 2026?
As of early 2026, cumulative Wellington property price growth over five years is expected to reach 20% to 30% in the base case, translating to annual appreciation of roughly 4% to 5.5%.
Forecasts range from 10% to 18% total growth in conservative scenarios up to 30% to 40% in optimistic scenarios.
The projected average annual rate of 4% to 5.5% aligns with Wellington City's long-run historical average of approximately 3.8% per year over two decades.
The key assumption underlying five-year forecasts is that interest rates will remain relatively low compared to historical averages, supporting ongoing buyer affordability.
Which areas in Wellington will have the best price growth over the next 5 years?
The top Wellington areas for five-year growth are city-fringe premium suburbs (Thorndon, Kelburn, Mount Victoria), coastal lifestyle areas (Seatoun, Island Bay, Lyall Bay), and Hutt Valley regeneration pockets (Petone, Lower Hutt Central/Woburn).
These areas are projected to achieve 25% to 40% cumulative growth over five years, outperforming the broader average due to scarce supply and lifestyle appeal.
This largely aligns with the one-year outlook, as the same scarcity and amenity drivers persist, though Hutt Valley areas may show stronger performance as infrastructure improvements take effect.
Johnsonville stands out as an undervalued area with strong five-year potential, as its rail connectivity and suburban amenities attract families priced out of inner Wellington.
What property type will give the best return in Wellington over 5 years as of 2026?
As of early 2026, well-located two to three bedroom townhouses are expected to deliver the best total return over five years, balancing capital appreciation and rental income without standalone house or apartment complexities.
Projected five-year total return for quality townhouses is 35% to 50% (combining 20% to 35% appreciation plus rental income), outperforming apartments where insurance and body corporate costs erode returns.
The main trend favoring townhouses is ongoing suburban intensification, with new developments providing modern, low-maintenance housing appealing to owners and tenants alike.
For the best balance of return and lower risk, standalone houses in established suburbs like Karori, Brooklyn, or Hataitai offer solid appreciation with simpler ownership and broad buyer appeal.
How will new infrastructure projects affect property prices in Wellington over 5 years?
The top three infrastructure projects impacting Wellington prices over five years are Let's Get Wellington Moving transport programme, rail network improvements connecting the Hutt Valley, and urban regeneration in Johnsonville and Kilbirnie.
Properties near completed infrastructure in Wellington typically see a 5% to 15% price premium compared to similar properties without improved accessibility.
Neighborhoods benefiting most include Johnsonville (rail improvements), Kilbirnie and Miramar (potential transport upgrades), and Lower Hutt suburbs with enhanced rail frequency.
How will population growth and other factors impact property values in Wellington in 5 years?
Wellington's population is projected to grow 0.8% to 1.2% annually over five years, adding approximately 8,000 to 12,000 residents needing housing, putting upward pressure on values where supply is limited.
The demographic shift with strongest influence is growth in smaller households, as more young professionals, couples, and retirees seek well-located apartments and townhouses rather than large family homes.
Migration patterns will support Wellington values, though the city's public sector concentration means net migration can swing more sharply with government hiring decisions than in Auckland or Christchurch.
Two to three bedroom townhouses in transit-accessible suburbs like Johnsonville, Kilbirnie, and Petone are best positioned to benefit from these demographic trends.
We made this infographic to show you how property prices in New Zealand compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What is the 10 year property price outlook in Wellington?
What is the 10-year property price prediction for Wellington as of 2026?
As of early 2026, cumulative Wellington property price growth over ten years is expected to reach 50% to 90%, translating to average annual appreciation of roughly 4% to 6.5%.
Ten-year forecasts range from 40% to 50% in conservative scenarios up to 80% to 100% in optimistic scenarios.
The projected annual rate of 4% to 6.5% is consistent with New Zealand's long-run housing cycles showing steady compounding interrupted by periodic corrections.
The biggest uncertainty in ten-year predictions is the future path of interest rates, as higher rates would dampen affordability while sustained low rates would support appreciation.
What long-term economic factors will shape property prices in Wellington?
The top three long-term factors shaping Wellington property prices are the interest rate regime, Wellington's employment base evolution (government and knowledge work concentration), and housing supply policy including consents and intensification rules.
The factor with most positive long-term impact is sustained population and household growth, as more people needing homes in a geographically constrained city will support demand through economic cycles.
The greatest structural risk is Wellington's heavy reliance on public sector employment, as sustained government workforce reductions or remote work shifts could meaningfully dampen housing demand.
You'll also find a much more detailed analysis in our pack about real estate in Wellington.
Is buying a property in Wellington a good long-term investment?
As of early 2026, buying Wellington property can be a good long-term investment if you choose wisely, with family-friendly, supply-constrained suburbs offering the strongest prospects for steady appreciation.
The strongest argument for Wellington as long-term investment is its fundamental geography, where hills, harbour, and fault lines limit new housing, creating ongoing scarcity that supports values in established suburbs.
The strongest argument for caution is the ownership cost structure, particularly for apartments where rising insurance, earthquake strengthening, and body corporate fees can erode returns more than in other NZ cities.
For the best balance of growth and manageable risk, standalone houses and townhouses in Karori, Brooklyn, Hataitai, Thorndon, and Petone offer solid prospects, while apartments require careful selection.
You'll also find a dedicated document about this specific question in our pack about real estate in Wellington.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Wellington, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Cotality (CoreLogic NZ) Home Value Index | One of New Zealand's most cited property indexes, used by banks and media. | We used it as our anchor for current Wellington values and 12-month growth. We cross-checked direction against QV data. |
| QV House Price Index | New Zealand's government-owned valuation company with decades of data. | We used it to validate market direction and cycle context. We also used QV-sourced suburb figures as cross-checks. |
| Opes Partners Wellington Analysis | Transparently cites official datasets including LINZ and Tenancy Services. | We used it to pull Wellington City values and suburb price anchors. We treated it as a presentation layer over official data. |
| Reserve Bank of New Zealand Monetary Policy Statement | The central bank's official view on interest rates and economic conditions. | We used it to explain interest rate direction and frame demand scenarios. We cross-checked with Reuters coverage. |
| RBNZ Housing Key Statistics | Official source for New Zealand mortgage rate series. | We used it to translate OCR moves into real borrowing costs. We used the series direction to explain price sensitivity. |
| Stats NZ Subnational Population Estimates | National statistics agency with the most defensible population data. | We used it to ground demand drivers including population and household growth. We translated it into housing pressure. |
| Stats NZ Building Topic Hub | Official gateway to building consents and construction activity data. | We used it to explain the new supply pipeline. We cross-checked with regional consent summaries. |
| Stats NZ Building Consents (via PublicNow) | Republishes Stats NZ releases with links to underlying data. | We used it to cite Wellington consent volumes as a supply signal. We treated it as a mirror of official Stats NZ releases. |
| MBIE Building Performance | Official government channel for building rules and exemptions. | We used it to explain policy changes like granny flat exemptions. We folded it into five-year supply scenarios. |
| Tenancy Services Market Rent Tool | Official MBIE service built from lodged rental bonds. | We used it to anchor rents and yield logic for investor questions. We cross-checked with Infometrics data. |
| Tenancy Services Rental Bond Data | Long-run official dataset behind bond activity in New Zealand. | We used it to explain rental market activity and churn. We used it as robustness check when other series disagreed. |
| Infometrics Wellington Residential Rents | Well-established NZ consultancy republishing official series clearly. | We used it as third-party cross-check for Wellington rent levels and direction. |
| Ministry of Transport Let's Get Wellington Moving | Official government page about major Wellington transport investments. | We used it to explain how transport upgrades shift suburb "winners." We translated projects into price pressure. |
| St. Louis Fed (FRED) NZ Property Prices | Reputable macro-data portal mirroring BIS long-run series. | We used it for long-run context on NZ housing cycles. We did not use it for suburb-level numbers. |
| ANZ Bank Property Focus Research | Major bank research widely cited for NZ property forecasts. | We used it to anchor 2026 price growth expectations. We adjusted national forecasts for Wellington factors. |
| Reuters NZ House Price Forecasts | Aggregates analyst polls from multiple institutions. | We used it to triangulate consensus views. We compared analyst ranges to our Wellington estimates. |
| Reuters RBNZ Rate Decision Coverage | Independent reporting on central bank decisions and guidance. | We used it to cross-check RBNZ rate decisions. We incorporated market reactions into our analysis. |
| Reuters NZ Public Sector Reporting | Credible international reporting on Wellington employment dynamics. | We used it to explain Wellington's sensitivity to government employment. We factored this into risk assessments. |
| Cotality Suburb-Level Insights | Detailed analysis of how property types perform at turning points. | We used it to explain how houses versus townhouses move as markets recover. |
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If you want to go deeper, you can read the following: