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
Are you considering investing in a property that promises both growth and stability? Wondering why Wellington is becoming a top choice for savvy buyers? Curious about the factors driving its real estate market in 2025?
We will lay down recent insights, ici no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the New Zealand Property Pack
1) Wellington's coast provides unmatched waterfront property opportunities
Wellington's coastal location offers unique waterfront property opportunities that are hard to ignore.
In 2024, the median house price in Wellington's coastal regions saw significant increases, with the West Coast experiencing a 21.2% rise and Tasman a 10.6% increase. This trend shows that coastal properties are becoming more valuable over time. The rising property values in these areas are a strong indicator of their growing appeal.
Another factor is the increased demand for waterfront properties. In recent years, Wellington has seen a 55.0% increase in new property listings, reflecting a growing interest in these areas. This demand is further supported by the limited availability of waterfront land, which adds to the scarcity value and drives up prices.
Additionally, waterfront properties in Wellington tend to offer higher rental yields compared to inland properties. As of June 2024, the gross rental yield for a one-bedroom apartment was 5.17%, indicating that these properties can be a lucrative investment. The combination of rising property values, increased demand, and higher rental yields makes Wellington's coastal location particularly attractive for property investments.
Wellington's coastal properties are not just about numbers; they offer a lifestyle that many find irresistible. Imagine waking up to the sound of waves and having the beach as your backyard. This lifestyle is a big draw for both buyers and renters, adding to the demand and value of these properties.
With limited waterfront land available, the scarcity factor plays a significant role in driving up prices. This scarcity, combined with the lifestyle benefits, makes Wellington's coastal properties a hot commodity. If you're considering investing, now might be the time to dive in.
Sources: REINZ, Tommy's Real Estate, Statista
2) Wellington's limited land boosts existing property values
Wellington City is compact with limited land, driving up property values.
Back in 2023 and 2024, Wellington had just a sliver of greenfield land left, enough for only 2,628 new homes over 30 years. This scarcity makes it tough to build new houses, especially since the city is already quite developed.
Adding to the challenge, Wellington's population is on the rise. It's expected to increase by 26% over the next 30 years, meaning more people will be looking for homes. But with not enough new homes being built, there's a shortage, particularly for terrace houses and apartments.
For those considering buying property here, it's crucial to understand that the city's compact size means limited land for new developments. This naturally increases the value of existing properties, making it a competitive market.
Insider tip: If you're eyeing a property in Wellington, keep in mind that the demand is high, and the supply is tight. This dynamic is especially true for popular neighborhoods where everyone wants to live.
So, if you're thinking about investing in Wellington, remember that the city's unique landscape and growing population are key factors in the property market. Acting sooner rather than later might be a wise move.
Sources: Wellington Regional HBA, State of Housing Infographic Report
Everything you need to know is included in our Property Pack for Wellington
3) Wellington's innovation and startup focus drives a dynamic economic environment
Wellington is buzzing with innovation and startups, making it a hotspot for economic growth.
At the heart of this vibrant scene is the Taiawa Wellington Tech Hub, nestled within Te Herenga Waka—Victoria University of Wellington. This co-working space is home to forward-thinking businesses like climate tech pioneers Cogo and CarbonInvoice, offering them a collaborative environment to flourish. It's a place where ideas meet action, and innovation is the norm.
Wellington is also rich with startup accelerators and incubators such as Lightning Lab, Creative HQ, and Kiwibank Fintech Accelerator. These programs are the backbone for new startups, providing essential support, mentorship, and networking opportunities. They help young companies find their footing and grow, making Wellington a nurturing ground for fresh ideas.
The city is seeing a surge in venture capital investment, especially in sectors like generative AI and climate tech. In 2023, climate tech startups attracted a record $7.6 billion in VC investment, showing a strong vote of confidence in these innovative fields. This influx of capital is a testament to the dynamic and promising nature of Wellington's economic landscape.
Government initiatives are also fueling this innovation wave. WellingtonNZ, in partnership with Te Herenga Waka—Victoria University of Wellington, is working towards creating a shared culture of ambition and collaboration. Their goal is to generate 30,000 new high-value jobs in the next decade, underscoring a commitment to economic growth through innovation.
Sources: Victoria University of Wellington, Exploding Topics, Creative HQ, Failory
4) Wellington's booming tech industry ensures a stable job market driving high housing demand
Wellington's tech industry is booming, with 3,560 new jobs created in 2023 and 2024.
This surge is largely due to the rise in tech startups and companies setting up shop in the city. In 2023, 873 new tech firms opened, a 5.3% increase, thanks to initiatives like the ScaleUp Wellington Support Package offering coworking spaces and expert advice.
The tech sector's impact on New Zealand's economy is significant, contributing $22.6 billion to the GDP in 2023. Wellington stands out, with 36.8% of its GDP coming from high-value services, especially in professional, scientific, and technical fields.
With the tech industry's growth, there's a rising demand for skilled workers, leading to more job openings and higher salaries. This makes Wellington a magnet for tech professionals, further strengthening the local job market.
The influx of tech workers naturally boosts housing demand, as these professionals look for homes near their workplaces. This trend is reshaping the real estate landscape in Wellington, making it a hot spot for property buyers.
Sources: NZTech, Creative HQ, Greater Wellington Regional Council, DWS, iStart
5) Wellington's compact layout places properties within walking distance to amenities boosting their desirability
Wellington's compact city layout makes its properties highly desirable.
Many homes are just a short stroll away from essential amenities like shops, schools, and parks, thanks to Wellington's smart urban planning. The Wellington Urban Growth Plan aims to keep the city compact, ensuring that the central area will see more dwellings while maintaining easy access to these conveniences.
Residents love the city's walkability, which is a big part of its charm. The mix of residential, commercial, and social activities in suburban centers means everything you need is close by, boosting overall livability. Surveys show that people appreciate this convenience, which enhances their quality of life.
In Wellington, properties in walkable neighborhoods often fetch higher prices than those in less accessible areas. A single additional point of WalkScore can significantly increase home value, and this is evident in Wellington. Neighborhoods like Te Aro and Thorndon are expected to see price hikes due to their central locations and limited housing stock.
Wellington's layout means you can enjoy a vibrant lifestyle without the need for a car. This not only saves money but also contributes to a healthier lifestyle. Living in a walkable area means more opportunities for spontaneous social interactions and a stronger sense of community.
For those considering buying property in Wellington, the city's design offers a unique blend of convenience and community. The compact nature of the city ensures that everything is within reach, making it an attractive option for potential homeowners.
Sources: Kapiti Coast, Strong Towns, Wellington City Council
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6) Wellington's role as New Zealand's capital guarantees continuous government investment and infrastructure growth
Wellington's role as New Zealand's capital makes it a magnet for government investment and infrastructure development.
Take, for instance, the $4.1 billion set aside for the National Land Transport Fund in Budget 2024. This hefty sum is earmarked for speeding up key projects like the Roads of National Significance, showing just how committed the government is to boosting Wellington's infrastructure. The city's strategic position ensures it remains a priority for such investments.
Wellington's public sector is a big deal, with about 18% of New Zealand’s public sector jobs located here. This concentration of government roles provides a cushion of employment stability, which is especially valuable when the economy hits a rough patch. Thanks to this, the city has managed to keep unemployment rates low, hovering around 4% in early 2023.
Public transport in Wellington is getting a facelift, with new high-frequency bus routes and better services on the way. These upgrades are part of the government's push to improve urban amenities, making it easier for residents to get around without relying on cars. The changes are shaped by what the community wants, ensuring that the services meet the needs of the people who use them.
These efforts to enhance public transport are not just about convenience; they also aim to make the city more accessible and environmentally friendly. By reducing the need for private vehicles, Wellington is taking steps towards a more sustainable future.
Sources: Budget 2024, Wellington Live, Metlink
7) Wellington's digital connectivity and smart city initiatives boost property appeal
Wellington is becoming a hotspot for property buyers thanks to its focus on digital connectivity and smart city initiatives.
In 2023 and 2024, Wellington scored an impressive 94/100 on the Digital Connectivity Index, showing that internet service providers are doing a great job meeting residents' needs. This high level of connectivity is a big draw for anyone looking to buy property in the area.
The city’s Smart Wellington Program is a game-changer, bringing together different groups to tackle urban challenges. With its flexible IoT backbone and machine learning platforms, data is now more accessible and useful, creating a more efficient and connected urban environment. This is a major plus for potential property buyers.
Another exciting project is the Wellington Underground Asset Map (WUAM), which got a NZ$4 million boost to improve planning and reduce disruptions from infrastructure projects. This means a smoother living experience, making Wellington properties even more appealing to those who value modern infrastructure.
These digital improvements are also boosting the local economy. With high-speed internet and advanced digital infrastructure, businesses can operate more efficiently, attracting more investment and talent. This influx can lead to higher property values as people flock to areas with top-notch digital connectivity.
Sources: Digital.govt.nz, ISP Reports, Cities Today, Planetizen
8) Wellington's film industry status draws global attention and investment
Wellington is a magnet for the film industry, drawing in international interest and investment.
Thanks to its rich history of hosting blockbuster productions like the original Lord of the Rings trilogy, Wellington has become a go-to spot for filmmakers. This legacy continues with new projects such as "The Hunt for Gollum," produced by Peter Jackson, which keeps the spotlight on the city.
Big international productions, including "Our Flag Means Death" and the "Avatar Sequels," have chosen Wellington for its top-notch production capabilities. These projects not only showcase the city's ability to handle large-scale productions but also bring significant economic benefits to the region.
Wellington sweetens the deal for filmmakers with competitive government incentives. The Screen CanterburyNZ Production Grant and cash grants from the New Zealand Film Commission make it an attractive location. These perks, along with the city's status as a UNESCO City of Film, boost its appeal to international filmmakers.
Insider tip: Wellington's film industry isn't just about the big names. The city is buzzing with creative energy, offering a vibrant community for indie filmmakers and artists. This dynamic environment is a breeding ground for fresh talent and innovative projects.
For those considering a move to Wellington, the film industry offers more than just job opportunities. It brings a unique cultural vibe to the city, with film festivals, screenings, and events that make it a lively place to live.
Sources: RNZ, ChristchurchNZ, WellingtonNZ
Everything you need to know is included in our Pack for Wellington
9) Wellington's diverse population offers a vibrant multicultural living experience attracting many buyers
Wellington is a melting pot of cultures, making it a vibrant place to live.
Back in 2018, Wellington had a large number of residents from overseas, including folks from Australia, the Americas, and Asia. This mix of backgrounds brings a rich variety of traditions and perspectives to the city, creating a unique community vibe.
Language diversity adds another layer to Wellington's multicultural charm. By 2021, while English was the main language at home, a good number of people also spoke French. This linguistic variety weaves into the city's cultural fabric, making it a great spot for those who love diversity.
Events like the Wellington Pasifika Festival are key in showcasing the city's multicultural identity. This annual festival attracts over 15,000 attendees, celebrating Pacific cultures through art, language, performance, and food. Such events highlight how welcoming and inclusive Wellington is.
Wellington's food scene is a delicious reflection of its multicultural character. Local chefs often point to places like Highwater Eatery and Dragons, where you can taste the diverse flavors of the city. These spots offer a culinary journey through Wellington's multicultural community.
Sources: Overseas Born Population in Wellington City, Language Diversity in Wellington, Wellington Pasifika Festival, Wellington's Top Chefs
10) Wellington's earthquake resilience boosts long-term investment security
Wellington has become a safer bet for property buyers thanks to its enhanced earthquake resilience.
Since 2017, the city has enforced strict seismic strengthening regulations for new buildings. This means any new construction is designed to handle earthquakes, minimizing potential damage. It's a smart move that makes investing in Wellington's property market more secure.
But it's not just about new buildings. Wellington is also focused on retrofitting older structures to boost their earthquake resilience. The Wellington Lifelines Group has pinpointed 25 key projects to strengthen the city's infrastructure. These aren't just plans on paper; they have secured funding and are actively being implemented, which is a big plus for property investors.
The government is backing this up with a $3.9 billion investment in infrastructure resilience. This isn't just a new expense; many of these projects are already part of long-term plans, ensuring resources are used wisely. This strategic approach is expected to save the nation $6 billion if a major earthquake hits.
Wellington's proactive measures mean that the city is not only prepared for potential earthquakes but is also a more attractive place for property investment. The city's commitment to safety and resilience is a reassuring factor for anyone looking to invest in real estate here.
With these efforts, Wellington is setting a benchmark in earthquake preparedness, making it a city where property investments are not just about owning a piece of land but about securing a future.
Sources: Wellington Lifelines Group Report, RNZ News
11) Efficient public transport boosts demand for easily accessible Wellington properties
Wellington's public transport system is a key factor in making nearby properties more appealing.
The Metlink network, with its buses, trains, and ferries, is operated by six different providers, ensuring residents can easily navigate the city. This extensive coverage means you can get from the suburbs to the heart of Wellington without a hitch.
In 2024, Metlink rolled out new routes like Route 4 and extended Route 20, making it easier to reach hotspots such as the Wellington CBD and Victoria University. These changes have made daily commutes a breeze, boosting the desirability of homes with easy access to these routes.
On top of that, the Wellington Metro Rail Upgrade and the Community Connect concession have made public transport even more appealing. These initiatives have enhanced infrastructure and reduced travel costs, encouraging more people to hop on board.
With these improvements, Wellington's public transport is not just about getting from A to B; it's about making city living more convenient and affordable. This efficiency is a big draw for potential property buyers looking for easy access to the city.
Sources: GWRC Annual Monitoring Report, Talking Transport, NZTA Mode Shift Plans
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12) Top universities in Wellington guarantee high demand for student housing
Wellington's top universities are a magnet for students, creating a bustling demand for housing.
Take Victoria University of Wellington, for instance, which had 21,833 students in 2024. That's a lot of people looking for a place to stay! With such high enrollment, the need for student accommodation is always on the rise.
Then there's Massey University's Wellington campus, which consistently welcomes international students. These students often need specialized housing arrangements, adding another layer to the demand for student accommodation.
Local real estate agents are noticing this trend too. They've reported a surge in demand for student housing, especially as many universities are fully booked or even oversubscribed for 2025.
This isn't just a blip; it's a growing trend. More students are flocking to Wellington, and they all need somewhere to live. The presence of these universities means there's a constant influx of students needing accommodation.
So, if you're considering buying property in Wellington, keep in mind that the student housing market is booming. It's a vibrant scene, driven by the steady stream of students coming to the city for their education.
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
Related analyses:
- Overview of the current state of the real estate market in Wellington