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Property prices in Wellington are currently declining, with the median price down 6.5% year-on-year to $795,000 as of June 2025. However, market experts predict a turnaround with moderate growth of 3-7% expected in the coming year, driven by falling interest rates and stabilizing economic conditions.
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Wellington's property market has experienced significant corrections with prices down 25% from their 2021 peak, but signs of stabilization are emerging as we reach mid-2025.
First-home buyers are leading market activity while investors are gradually returning, with suburbs like Kelburn and Eastbourne showing positive growth of 3-4% in recent months.
| Key Indicator | Current Status (June 2025) | Year-on-Year Change |
|---|---|---|
| Median House Price | $795,000 | -6.5% |
| Average City Price | $956,548 | -4.1% |
| Days to Sell | 45 days | +15 days |
| Inventory Levels | High | +13.6% |
| Rental Yields | $630/week avg | +2.99% |
| Market Forecast 2025 | Growth Expected | +3-7% |
| Interest Rates | 4.99% (2-year) | Declining |
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.
What's the current median house price in Wellington as of June 2025?
The median house price in Wellington currently sits at $795,000, representing a 6.5% decline from June 2024.
This figure reflects the broader Wellington region, while Wellington City specifically shows a higher average price of $956,548. The variation between median and average prices indicates a diverse market with significant price differences across suburbs and property types.
Premium suburbs like Seatoun maintain values above $1.6 million, while more affordable areas like Wellington Central offer median prices around $430,900. This creates a wide spectrum of opportunities for different buyer segments in the market.
The current pricing represents a significant correction from the market peak in late 2021 when median prices exceeded $1 million. Properties are now approximately 25% below those peak values, creating what many experts consider attractive entry points for buyers.
As we reach mid-2025, the market shows signs of bottoming out with monthly price declines moderating to less than 1% compared to sharper falls earlier in the correction cycle.
How much have Wellington property prices changed in the past 12 months?
Wellington property prices have decreased by 6.5% year-on-year as of June 2025, with the median falling from approximately $850,000 to $795,000.
The rate of decline has varied significantly across different metrics. While median sale prices dropped 6.5%, the House Price Index shows a more modest 4.1% decline, suggesting that the mix of properties selling has shifted toward lower-priced homes.
Interestingly, average asking prices have increased by 12.9% despite falling values, reaching $95,000 higher than May 2024. This paradox reflects reduced new listings (down 32.1%) and sellers holding out for better prices in a challenging market.
The pace of price declines has slowed considerably in recent months. Over the past three months to June 2025, prices fell only 1.3%, indicating potential stabilization after the steeper corrections of 2022-2024.
First-home buyers have been the primary beneficiaries of these price adjustments, with increased activity in the sub-$800,000 market segment where competition has intensified despite overall market softness.
Which Wellington suburbs are experiencing the strongest price growth right now?
Kelburn and Eastbourne lead Wellington's recovery with price growth of 4.1% and 3.9% respectively over the past three months to June 2025.
Central suburbs showing resilience include Mount Victoria and Te Aro, where demand from young professionals and proximity to amenities continues to support values. These areas benefit from the ongoing trend of buyers prioritizing walkability and urban lifestyle options.
Over a longer timeframe, Southgate has been the standout performer with 3.83% growth over two years, demonstrating consistent appreciation even during the broader market correction.
| Suburb | 3-Month Growth | 2-Year Growth | Trend |
|---|---|---|---|
| Kelburn | +4.1% | +2.5% | Strong |
| Eastbourne | +3.9% | +1.8% | Rising |
| Southgate | +1.2% | +3.83% | Steady |
| Mount Victoria | +2.1% | +0.5% | Improving |
| Te Aro | +1.8% | -2.1% | Recovering |
| Northland | -2.3% | -10.73% | Weak |
| Karori | +0.5% | -3.2% | Stabilizing |
In contrast, suburbs like Northland continue to struggle with values down 10.73% over two years, highlighting the uneven nature of Wellington's property market recovery.
What property types are seeing the biggest price movements in 2025?
Standalone houses are outperforming other property types with 62% of suburbs recording flat or rising prices in the past three months.
The strength in standalone houses reflects buyer preferences for space, gardens, and parking – features that became more valued during and after the pandemic. Family-oriented suburbs like Karori and Johnsonville are seeing renewed interest for these property types.
Townhouses and flats are lagging significantly with only 54% of suburbs showing stable or rising prices, and just 16% recording growth above 2%. This segment faces challenges from increased supply and competition from new developments.
Apartments in Wellington Central continue to face headwinds with oversupply issues and changing work patterns reducing demand from young professionals. However, well-located units with modern amenities and outdoor space are holding value better.
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What are the latest mortgage interest rates affecting Wellington buyers?
Current mortgage rates in Wellington have dropped to 4.99% for a 2-year fixed term, down from peaks above 7% in 2023.
The Reserve Bank of New Zealand cut the Official Cash Rate (OCR) in early 2025 with expectations of further reductions throughout the year. This monetary easing aims to stimulate economic activity and support the housing market recovery.
Banks are competing aggressively for mortgage business with special rates and cashback offers. The most attractive rates are available for borrowers with at least 20% deposits, while low-deposit borrowers face rates approximately 0.5-1% higher.
These lower rates are beginning to improve borrowing capacity for buyers. A household that could borrow $600,000 at 7% rates can now access approximately $680,000 at current rates, significantly expanding their purchasing options.
Market analysts expect rates to stabilize around 4.5-5% through 2025, providing a supportive environment for property purchases without reigniting the rapid price growth seen during the ultra-low rate period of 2020-2021.
How does Wellington's property market compare to other New Zealand cities?
Wellington's property market has underperformed other major centers with a 25% decline from peak compared to Auckland's 21.6% and Christchurch's 7% corrections.
The median house price in Wellington at $795,000 sits between Auckland's $1 million and Christchurch's $698,000, positioning it as a middle-market option. This represents better value than Auckland while offering more amenities than smaller centers.
Wellington's recovery prospects lag behind other cities with analysts predicting prices won't return to peak levels until 2031, compared to 2028 for Auckland and 2025 for Christchurch. This extended timeline reflects the capital's exposure to public sector employment cuts.
| City | Median Price | From Peak | Recovery Date | YoY Change |
|---|---|---|---|---|
| Auckland | $1,000,000 | -21.6% | 2028 | -5.5% |
| Wellington | $795,000 | -25.0% | 2031 | -6.5% |
| Christchurch | $698,000 | -7.0% | 2025 | +1.4% |
| Hamilton | $785,000 | -15.3% | 2027 | -3.2% |
| Tauranga | $920,000 | -18.5% | 2028 | -4.8% |
| Dunedin | $615,000 | -10.2% | 2026 | -1.9% |
| Queenstown | $1,515,000 | -5.5% | 2025 | +2.8% |
Despite current challenges, Wellington maintains advantages including strong rental yields averaging 4.2% compared to Auckland's 3.5%, making it attractive for property investors seeking income returns.
What impact are government policies having on Wellington property prices in 2025?
New zoning changes allowing six-storey buildings near transport hubs are increasing development potential and moderating price growth in affected areas.
The Wellington District Plan's relaxed yard requirements for medium and high-density zones have made townhouse developments more viable, contributing to increased supply in suburbs like Kilbirnie and Johnsonville. This additional inventory is helping to cap price growth.
Public sector job cuts have significantly impacted Wellington's market with regional employment down 11.6% in 2024. This has reduced buyer demand and contributed to the steeper price corrections compared to other cities.
The reintroduction of interest deductibility for property investors from April 2025 is beginning to attract investor activity back to the market. Early signs show investors now represent 23% of purchases, up from historic lows but still below the 30% long-term average.
Debt-to-income lending restrictions introduced by the Reserve Bank are limiting borrowing capacity for some buyers, particularly those relying on single incomes. This policy aims to prevent a return to unsustainable price growth while maintaining financial stability.
Which areas of Wellington offer the best value for money currently?
Wellington City appears 13.62% undervalued based on long-term price trends, suggesting strong potential for capital growth recovery.
Lower Hutt and Upper Hutt offer exceptional value with median prices around $650,000-$725,000 while providing good transport links to the CBD. These areas attract families seeking affordability without sacrificing urban amenities.
Porirua has emerged as a value hotspot with 14.1% year-on-year price growth, benefiting from improved transport infrastructure and relative affordability compared to Wellington City. The median price of approximately $680,000 offers significant savings.
First-home buyers are finding opportunities in suburbs like Newtown and Miramar where older properties needing renovation sell below market rates. These areas offer potential for value-add improvements while maintaining proximity to employment centers.
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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's driving demand in Wellington's property market right now?
First-home buyers represent the dominant force in Wellington's market, taking advantage of price corrections and lower interest rates to enter property ownership.
The shift to flexible working arrangements continues to influence buyer preferences with properties offering home office space or proximity to co-working facilities commanding premiums. Suburbs with reliable internet infrastructure and café culture like Mount Victoria see stronger demand.
Lifestyle factors are increasingly important with buyers prioritizing access to outdoor amenities, walkability, and community facilities. Eastern suburbs near beaches and those with established walking tracks are experiencing renewed interest.
Interstate migration from Auckland adds to demand as buyers seek Wellington's relatively affordable prices and compact city lifestyle. These purchasers often have higher budgets from Auckland property sales, supporting prices in premium suburbs.
Environmental consciousness drives demand for energy-efficient properties with solar panels, insulation upgrades, and sustainable features. New developments emphasizing these aspects in suburbs like Karori achieve price premiums of 5-10%.
What do property experts predict for Wellington prices over the next 12 months?
Major banks and analysts forecast Wellington property prices will increase 3-7% by December 2025, with a median prediction of 6.8% growth.
The recovery is expected to be gradual rather than dramatic, with experts emphasizing market consolidation over rapid appreciation. This measured growth reflects ongoing economic uncertainties and the substantial inventory still available for sale.
Tommy's Real Estate experts predict particular strength in high-demand areas like Te Aro, Thorndon, and Mount Victoria where limited supply meets consistent buyer interest. These central suburbs could see growth toward the upper end of forecasts.
The Reserve Bank expects national house price growth of 4.5% in 2025, but cautions that debt-to-income ratios will constrain excessive price increases. This suggests Wellington's growth will align with rather than exceed national trends.
Long-term projections remain positive with the historical average growth rate of 4.22% per year expected to resume once current market imbalances resolve. This positions property as a solid investment for patient buyers.
How long are properties taking to sell in Wellington currently?
Properties in Wellington currently take a median of 45 days to sell, up from 30 days during the market peak but faster than the national average of 54 days.
Well-presented properties in desirable suburbs priced correctly can still sell within 2-3 weeks, particularly standalone houses in family-friendly areas. However, overpriced listings or those requiring significant work may remain on market for 60-90 days.
The improved selling timeframe compared to late 2024 reflects stabilizing market conditions and increased buyer activity. Spring 2025 has brought renewed interest with open home attendance improving and multiple offers returning for quality properties.
Auction clearance rates remain subdued at approximately 35%, leading most vendors to opt for negotiation or tender sales processes. This shift gives buyers more time for due diligence but can extend the overall transaction timeline.
Real estate agents report that properties marketed with professional photography, detailed floor plans, and comprehensive information sell 30% faster than basic listings, highlighting the importance of presentation in the current market.
What opportunities exist for property investors in Wellington?
Rental yields in Wellington average 4.2% gross, providing stronger returns than Auckland while capital growth prospects improve with market stabilization.
The rental market remains tight with median weekly rents at $630 and annual growth of 2.99%, ensuring consistent income for investors. Student accommodation near universities and professional rentals in central suburbs achieve premium rents.
| Investment Type | Average Yield | Capital Growth Potential | Risk Level |
|---|---|---|---|
| Central Apartments | 5.2% | Moderate | Medium |
| Family Homes (Suburbs) | 3.8% | High | Low |
| Student Accommodation | 6.1% | Low | Medium |
| Professional Rentals | 4.5% | Moderate | Low |
| Development Sites | N/A | Very High | High |
| Renovation Projects | 3.2% | High | Medium |
| New Build Townhouses | 4.0% | Moderate | Low |
With interest deductibility returning and prices well below peak, the investment fundamentals are improving. Investors now represent 23% of market activity, suggesting growing confidence in Wellington's long-term prospects.
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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.
No, they're going down - Wellington property prices are currently in decline, having fallen 6.5% year-on-year to a median of $795,000 as of June 2025. The market has corrected approximately 25% from its 2021 peak, creating significant opportunities for buyers.
However, the rate of decline is moderating with signs of stabilization emerging. Expert forecasts suggest the market will transition from falling to modest growth of 3-7% over the next 12 months, supported by declining interest rates and improving economic conditions. While prices are still going down as we reach mid-2025, the market appears to be approaching its bottom.
Sources
- Wellington City House Prices [2025] | Property Market
- Wellington Property Market (2025) | Average House Prices
- Wellington property market update - March 2025
- Wellington real estate market outlook for 2025
- OneRoof House Price Report - June 2025
- QV House Price Index
- Wellington Price Forecasts 2025
- Wellington Real Estate Market Statistics
- Wellington's median house price down to $750,000
- Wellington property market update – Outlook for 2025