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Yes, the analysis of Wellington's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Te Aro? It’s a vibrant area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other suburbs like Mount Victoria or Thorndon where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Wellington Property Pack.
Will property prices increase in Wellington in 2025?
Yes, property prices in Wellington are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Wellington remains one of the most attractive cities in New Zealand for both domestic and international investors.
Sure, there are some economic bumps like inflation and rising interest rates, but the main drivers behind Wellington’s price growth aren’t going anywhere.
Demand, especially in the central areas, still outstrips supply by a significant margin, making any major price dips unlikely. And let’s not forget—Wellington’s status as the capital city and a cultural hub continues to draw in buyers from around the country and beyond.
Signals pointing to a property price increase in Wellington
Here are some factors suggesting prices could increase:
The ongoing shortage of housing supply in Wellington, exacerbated by limited land availability and slow construction rates, is expected to continue into 2025, pushing property prices upward as demand remains strong.
Wellington's robust job market, particularly in government and tech sectors, is attracting more professionals to the city, increasing demand for housing and driving up property prices.
Infrastructure improvements, such as the Let’s Get Wellington Moving initiative, are set to enhance the city’s transport links and livability, making it a more attractive place to live and invest, thereby boosting property values.
The city’s appeal as a cultural and educational hub continues to draw students and young professionals, maintaining a steady demand for rental properties and encouraging investment in the housing market.
Wellington's scenic beauty and lifestyle appeal are increasingly attracting retirees and lifestyle buyers, adding to the demand for properties in desirable locations.
Government policies aimed at increasing housing affordability and supply, while slow to take effect, are expected to gradually improve market conditions, supporting price stability and growth.
The trend of remote working is encouraging more people to move to Wellington for its quality of life, further increasing demand for housing in the city.
Signals pointing to a property price decrease in Wellington
Here are some factors suggesting prices could fall:
Rising interest rates are making mortgages more expensive, potentially reducing the number of buyers who can afford to enter the market, which could dampen demand.
Economic uncertainties, including inflation and potential global economic slowdowns, could impact consumer confidence and spending power, leading to a cooling of the property market.
If government interventions to increase housing supply and affordability are more effective than anticipated, they could lead to a stabilization or even a decrease in property prices as more homes become available.
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If property prices go up in Wellington, how much would they increase by?
If real estate prices in Wellington were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in dynamic markets like Wellington appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Te Aro for 850,000 NZD today, don't be surprised if it's priced between 875,500 and 909,500 NZD this time next year.
To give you a better understanding, here is a table that shows 7 types of Wellington real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (NZD) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Central Apartment (60 sqm / 646 sqft) | NZD 900,000 | NZD 927,000 | NZD 945,000 | NZD 963,000 |
| Modern Apartment (75 sqm / 807 sqft) | NZD 1,200,000 | NZD 1,236,000 | NZD 1,260,000 | NZD 1,284,000 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | NZD 2,500,000 | NZD 2,575,000 | NZD 2,625,000 | NZD 2,675,000 |
| Studio (30 sqm / 323 sqft) | NZD 450,000 | NZD 463,500 | NZD 472,500 | NZD 481,500 |
| Loft (80 sqm / 861 sqft) | NZD 1,600,000 | NZD 1,648,000 | NZD 1,680,000 | NZD 1,712,000 |
| Townhouse (150 sqm / 1,615 sqft) | NZD 3,500,000 | NZD 3,605,000 | NZD 3,675,000 | NZD 3,745,000 |
| Investment Property (50 sqm / 538 sqft) | NZD 750,000 | NZD 772,500 | NZD 787,500 | NZD 802,500 |
Everything you need to know is included in our Property Pack for Wellington
If real estate prices go up in Wellington, which areas are likely to see the biggest increases?
Today, people who want to move to Wellington are looking for a blend of natural beauty, modern amenities, and a vibrant cultural scene, which Te Aro delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Mount Victoria has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Wellington market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Te Aro | High | Recent development of luxury apartments and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Thorndon | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Wellington. |
| Newtown | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Lambton Quay | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Karori | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Mount Victoria | Medium | Investment in local infrastructure, such as the extension of public transport lines and renovation of historic areas, is boosting long-term value. |
| Island Bay | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Kelburn | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Miramar | Medium-High | Its proximity to Wellington's film industry, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Brooklyn | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Seatoun | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Oriental Bay | High | Upcoming restoration of waterfront areas and high-profile cultural projects are driving a renewed focus on this central, scenic location. |
-The best areas to buy a property in Wellington
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Wellington?
In 2025, Wellington real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Homes in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Wellington, such as Lower Hutt and Porirua, are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In a city like Wellington, with its stunning natural surroundings, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Wellington's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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