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
What do the latest numbers reveal about Wellington’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Wellington, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) In 2024, about 18% of Wellington homebuyers were first-time buyers, above the national average of 15%
In 2024, 18% of homebuyers in Wellington were first-time buyers, slightly above the national average of 15%.
Wellington's property market was particularly inviting for newcomers. Lower house prices and accessible financing options, like KiwiSaver withdrawals and low-deposit lending, made it easier for first-time buyers to step into the market.
As a bustling city with a strong economy, Wellington naturally drew in more first-time buyers. The combination of economic opportunities and affordable housing created an ideal environment for those looking to purchase their first home.
Compared to other regions, Wellington offered a good number of available listings, which meant more choices for potential buyers. This abundance of options helped ease the buying process for newcomers.
First-time buyers in Wellington benefited from the city's unique market conditions. The availability of low-deposit lending was a game-changer, allowing many to secure homes without the hefty upfront costs typically associated with buying property.
Sources: Trade Me Property, RNZ
2) About 26% of homes sold in Wellington in 2024 were detached houses, maintaining a steady trend
In 2024, approximately 26% of homes sold in Wellington were detached houses, continuing a steady trend.
Wellington's housing market has been on the rise, largely due to lower interest rates sparking buyer interest. This has made it easier for families and those seeking more space to consider purchasing detached homes.
The demand for homes in Wellington, including detached ones, has remained strong, partly because of rising median home prices. This trend suggests that people are still eager to invest in property despite the cost.
Local development projects and lifestyle changes among buyers have also played a role in this demand. These factors have contributed to a consistent interest in detached houses, which are often seen as ideal for those wanting more room.
Wellington's market dynamics reflect a broader trend where detached homes continue to be a popular choice. This is evident in the steady percentage of such homes being sold year after year.
Sources: Tommy's Real Estate, Tom Day Properties, Tommy's Real Estate
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of New Zealand. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
3) About 18% of Wellington home sales in 2024 were for properties over $1,200,000
In 2024, about 18% of residential sales in Wellington were for properties valued over $1,200,000.
This trend is linked to the rising property prices in the area. For example, the median house price in Wellington jumped by 3.7% in August 2024, reaching $790,000. Just a month earlier, in July, prices had already climbed by 4.4%, hitting $765,000. These increases reflect a broader upward trend in the market.
Buyers had more choices too, as the number of properties for sale saw a significant boost. There was a year-on-year rise of 20-25% in available stock, which likely included more high-value homes. This increase in options might have made it easier for buyers to find properties over $1,200,000.
Several factors contributed to the market's recovery, such as lower interest rates and better weather. These conditions sparked renewed buyer interest, leading to more activity in the market. As a result, there were more transactions in the higher price brackets.
Wellington's housing market was heating up, with price rises and a spring surge driving this renewed interest. Buyers were eager to take advantage of the favorable conditions, pushing sales in the higher price range.
Sources: Tommy's Real Estate, Squirrel Blog, Redfin
4) Wellington’s population growth of 1.2% in 2024 increased demand for residential housing
In 2024, Wellington's population grew by 1.2%, boosting demand for homes.
With lower interest rates, buying a home became more accessible, drawing in first-time buyers. The weather was also on their side, making the idea of settling in Wellington even more appealing.
This surge in interest led to a rise in the median house price, a clear sign of the strong demand. The growing population played a significant role in this trend, even if the exact growth rate varied slightly from the 1.2% figure.
Wellington's housing market was already in a favorable position, but these factors combined to create a perfect storm for increased demand. The city's charm and improved conditions made it a hot spot for potential homeowners.
As more people moved to Wellington, the need for residential housing naturally increased. This influx of new residents was a key driver behind the rising house prices.
Overall, the combination of a growing population and favorable buying conditions made Wellington's housing market particularly dynamic in 2024.
Sources: World Population Review, Tommy's Real Estate, Tommy's Real Estate
5) A three-bedroom house in Wellington rented for a median of $680 per week in 2024, up from $650 in 2023
The median rental price for a three-bedroom house in Wellington has risen to $680 per week in 2024, up from $650 in 2023.
Wellington's rental market is bustling, especially during the peak season from November to February. This period sees increased demand, which often results in lower vacancy rates and subsequently higher rents. It's a time when many people are looking to move, pushing prices up.
Even though Wellington already has some of the highest average weekly rents in New Zealand, prices continue to climb. Over the past year, rents have seen a 2.8% increase, reflecting the ongoing demand and limited housing supply. This steady rise is a clear indicator of the market's dynamics.
Sources: Apartments.com, Just Property, Wellington City Council
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6) In 2024, the average cost per square meter for houses in Wellington was NZD 8,000 to NZD 9,500
In 2024, the average cost per square meter for houses in Wellington was between NZD 8,000 and NZD 9,500.
Back in 2023, apartment prices in Wellington were around NZD 6,455.41 per square meter in the city center and NZD 4,459.56 outside the city center. While these numbers are for apartments, they give us a glimpse into the property market trends in Wellington. Generally, houses are pricier per square meter than apartments because of factors like land value and construction costs.
In 2024, Wellington saw a noticeable increase in the median house price, indicating strong demand and possibly higher property values. This surge likely pushed the cost per square meter for houses above that of apartments.
Understanding these dynamics is crucial for potential buyers. The higher cost per square meter for houses reflects not just the demand but also the value of land and construction in Wellington. This makes it essential to consider these factors when planning a purchase.
For those eyeing a property in Wellington, it's important to note that the market is influenced by various elements, including economic conditions and urban development. These factors can significantly impact property prices and availability.
As you explore the Wellington real estate market, keep in mind that the price differences between houses and apartments are shaped by more than just size. Location, amenities, and future growth potential all play a role in determining value.
Sources: Wise, Tom Day Properties, CBRE New Zealand
7) In 2024, a two-bedroom apartment in Wellington rented for NZD 2,000 to NZD 2,400 monthly
In 2024, the average monthly rent for a two-bedroom apartment in Wellington was between NZD 2,000 and NZD 2,400.
This price range highlights the resilience of Wellington's rental market, with an average rent of $690 per week. Compared to the previous year, this was a slight increase, showing a steady demand for rental properties.
There was a 10% decrease in available rental properties in 2024, meaning fewer options for renters. This drop in supply likely helped keep rent prices stable or even pushed them higher.
After the holiday season, many people were looking for larger living spaces, which added to the demand in the rental market. This trend further supported the rental prices within the mentioned range.
Tommy’s Property Management saw a surge of interest in their listings, with over 300 enquiries during just one weekend. Such high demand can naturally lead to increased rental prices.
Sources: Wellington Rental Market Update | January 2024, The State of Wellington Rental Property Management 2024-2025
8) At least 15 new residential developments launched in Wellington in 2024
In 2024, Wellington experienced a boom in residential development, with at least 15 new projects launched.
The Wellington Regional Leadership Committee (WRLC) played a key role, identifying six housing developments with nearly 1,200 homes planned by August 2024. This shows a strong pipeline of projects, indicating a busy year for new launches.
WRLC's dedication to updating information on upcoming developments suggests that more projects were likely announced as the year went on. This ongoing update process could have pushed the total number of new developments to 15 or more by the year's end.
Although Tom Day Properties didn't provide exact figures, they emphasized the dynamic nature of Wellington's real estate market. This vibrant market environment likely supported the launch of numerous new residential projects.
With these factors in play, Wellington's real estate scene in 2024 was bustling, offering potential buyers a variety of new options. The combination of WRLC's planning and the market's dynamism created a fertile ground for development.
For anyone considering buying property in Wellington, this surge in development means more choices and opportunities in a thriving market. The city's growth is evident, making it an exciting time for potential homeowners.
Sources: Wellington Regional Leadership Committee (WRLC), Tom Day Properties
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.
9) Land near Wellington’s new transportation hubs appreciated by 5-6% in 2024
In 2024, land near Wellington's new transportation hubs appreciated by 5-6%.
Wellington made significant investments in its public transport system, which included accelerating bus corridors and upgrading the rail network. These improvements made the areas around the hubs more accessible, drawing interest from potential buyers. When connectivity improves, property interest often follows.
The real estate market in Wellington showed signs of stability in 2024. This newfound stability brought about increased buyer confidence and activity, which positively impacted property values, especially near transportation hubs. A stable market tends to encourage investment, pushing prices upward.
Wellington also saw a population growth of 1.2% in 2024. This increase in residents heightened the demand for housing, particularly in areas with good transport links, further boosting land values near the new hubs.
These factors combined to create a favorable environment for property appreciation. The improved transport infrastructure, market stability, and population growth all played a role in driving up land values.
Sources: Wellington Regional Land Transport Plan, Tommy's Real Estate Market Update
10) Pet-friendly properties in Wellington rented for 8% higher prices in 2024
In 2024, properties in Wellington labeled as "pet-friendly" rented for 8% higher prices.
Wellington is a city where many residents own pets, and they actively seek homes that welcome their furry companions. This growing demand naturally pushes up the prices for such properties. Landlords often add extra fees, like pet deposits or monthly pet rent, which further increases the overall rental cost.
Interestingly, while the general rental market in Wellington experienced a decline in prices, pet-friendly properties held their value. This is because pet owners are willing to pay a premium to ensure their pets are both welcome and comfortable.
Sources: Apartments.com, HotPads, Redfin
11) Properties near Wellington’s CBD increased in value by 5% in 2024 compared to the previous year
In 2024, properties near Wellington's CBD experienced a 5% increase in value compared to the previous year.
This growth was part of a broader trend, with Wellington's median house price rising by 3.7% in August and 4.4% in July of the same year. Such consistent increases in property values across the city likely contributed to the boost in the CBD area.
Another factor was the significant rise in property inventory, which saw a 20-25% increase in available homes, including more high-value options. This wider selection attracted more buyers, pushing up property values near the CBD.
Lower interest rates also played a crucial role, making it easier for first-time buyers to enter the market. This increased demand for properties in prime locations like the CBD, further driving up prices.
The spring season brought improved weather and renewed buyer interest, contributing to the market's vibrancy. This seasonal resurgence added to the demand for properties in Wellington's CBD.
Sources: Tommy's Real Estate, Tommy's Real Estate
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12) Wellington's average mortgage interest rate for homes was 5-6% in 2024
In 2024, the average mortgage interest rate for residential properties in Wellington was between 5-6%.
This rate reflects a stable and moderately growing real estate market in Wellington. The city saw increased buyer confidence and more properties available, which often leads to competitive mortgage rates. Lenders were eager to attract borrowers, contributing to these favorable conditions.
While the national mortgage rate in New Zealand was around 7% for a 30-year fixed mortgage by January 2025, Wellington's market had its own dynamics. Local economic conditions, housing demand, and lender competition played a role in keeping rates lower than the national average.
Platforms like Interest.co.nz show a range of rates from various lenders, indicating that specific offers in Wellington were more favorable. This made the 5-6% range more common for borrowers in the area during 2024.
Wellington's unique market conditions, such as local economic factors and lender strategies, contributed to these attractive rates. Borrowers in the region benefited from these specific dynamics, which differed from the broader national trends.
Understanding these factors can help potential buyers make informed decisions about purchasing property in Wellington, where regional variations can significantly impact mortgage rates.
Sources: Interest.co.nz, Tommy’s Real Estate
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.
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