Yes, the analysis of Wellington's property market is included in our pack
The question of 'the best neighborhood to buy a property in Wellington' does not have a one-size-fits-all answer.
Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.
That’s why the article below is covering every intent.
At BambooRoutes, when we write a blog post or when we update our our property pack for New Zealand, we want to bring solutions and cover different aims in a clear and organized way.
Enjoy the read, and please remember that we are not financial or investment experts. This article is for informational purposes only.
To improve the readability and user-friendliness of this article, we will categorize neighborhoods in Wellington into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.
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How is the real estate market in Wellington?
The real estate market in Wellington is currently quite dynamic, marked by a robust demand from a diverse range of buyers, including a significant interest from international buyers.
Wellington's allure lies in its unique blend of natural beauty, cultural richness, and economic stability, which is not commonly found elsewhere.
A key strength of Wellington is its stunning natural setting, nestled between rolling hills and a picturesque harbor. This provides residents with an unparalleled combination of urban living and easy access to nature.
The city is known for its vibrant arts scene, including the famous Te Papa museum, and a culinary landscape that celebrates local produce and diverse cuisines. These cultural elements are unique to Wellington and contribute significantly to its appeal.
The types of people looking to buy in Wellington are varied. They range from professionals drawn to the city's growing tech and creative industries, to retirees attracted by its relaxed pace of life and natural beauty.
Families are also keen on Wellington for its reputation for high-quality education and safe, community-focused neighborhoods.
Foreign buyers are particularly interested in Wellington due to New Zealand's reputation for political stability, safety, and a strong legal framework for property ownership. The city's lifestyle, combined with the potential for investment growth, makes it an attractive option for overseas investors.
The dynamism of Wellington's real estate market can be highlighted by a specific data point, such as the consistent year-on-year property value growth, outpacing many other regions in New Zealand. This trend underlines the high demand and potential for investment returns.
One unique aspect of Wellington properties is their architectural diversity, which includes Victorian-style homes, modern apartments with eco-friendly designs, and properties that offer stunning views of the harbor or surrounding landscape. This variety is not just aesthetic but also reflects the city's commitment to sustainable living and its historical roots.
Looking to the future, properties in Wellington are poised to gain value due to several factors.
The city's ongoing infrastructure developments, like improved transportation networks, are set to enhance accessibility and livability.
The growing tech and creative sectors promise economic growth and job opportunities, attracting more people to the city.
Additionally, Wellington's focus on sustainable urban development is likely to increase the appeal of its real estate in a world increasingly conscious of environmental issues.
Top neighborhoods in Wellington to consider for living
Areas in Wellington that are budget-friendly
If you're looking to buy property in Wellington on a budget, there are a few neighborhoods you might want to consider.
Here is a summary table. Below, we will give more details.
| Neighborhood | Average Price per Sqm | Property Types | Residents | Strengths | Weaknesses | Potential for Growth |
|---|---|---|---|---|---|---|
| Porirua | Lower than average | Standalone houses, Townhouses | Families, Young professionals | Community feel, Natural surroundings | Longer commute to central Wellington | Improved transportation links |
| Lower Hutt | Competitive | Single-family homes, Units, Apartments | Families, Retirees, Young professionals | Good amenities, Public transport | Some areas less vibrant | Redevelopment in certain parts |
| Upper Hutt | Lower compared to central areas | Standalone houses, Townhouses, Apartments | Families, Outdoor enthusiasts | Community, Outdoor activities | More remote, Longer commute | Improvements in infrastructure |
Porirua
Known for its relatively lower property prices compared to central Wellington, Porirua offers a mix of older, modest homes and newer developments.
The affordability here is primarily due to its distance from Wellington's city center, making it less desirable for those who prioritize proximity to the central business district. However, with improved transportation links and ongoing development, property values in Porirua have potential for growth.
You'll find a range of housing options, from standalone houses to townhouses. The average price per square meter in Porirua is generally lower than Wellington's average. The area attracts a diverse mix of residents, including families and young professionals.
The strengths of Porirua include its community feel and natural surroundings, while a downside can be the longer commute to central Wellington.
Lower Hutt
This area offers affordability due to its mix of older housing stock and some areas needing revitalization.
Lower Hutt is undergoing redevelopment in certain parts, which could lead to an increase in property values. You can find a variety of properties in Lower Hutt, from traditional single-family homes to units and apartments.
The average price per square meter in Lower Hutt is competitive, especially considering the proximity to Wellington. The population in Lower Hutt is diverse, with a blend of families, retirees, and young professionals.
The strengths include good local amenities and public transport links, while some areas might lack the vibrancy of central Wellington.
Upper Hutt
Upper Hutt is known for its more affordable housing market, often attributed to its further distance from Wellington's city center and the perception of being more remote.
However, this also means properties here have good potential for value appreciation, especially with improvements in local infrastructure and amenities. The area predominantly features standalone houses, with a growing number of townhouses and apartments.
The average price per square meter in Upper Hutt is lower compared to more central areas. Upper Hutt attracts a mix of demographics, including families and outdoor enthusiasts, thanks to its natural settings.
The main strengths are the sense of community and access to outdoor activities, while a potential drawback is the longer commute to Wellington's city center.
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Areas in Wellington that are popular and upscale
When looking to buy property in Wellington, three neighborhoods stand out as upscale and popular choices. These neighborhoods each have their unique character and draw different types of residents.
| Neighborhood | Average Price per Sqm | Property Types | Resident Demographics | Strengths | Weaknesses |
|---|---|---|---|---|---|
| Oriental Bay | High | Luxurious apartments, high-end houses | Affluent professionals, families | Scenic views, vibrant culture, proximity to CBD | High cost of living, limited availability |
| Thorndon | High | Heritage properties, contemporary townhouses | Government officials, professionals, families | Excellent schools, community feel | Limited parking, busy traffic |
| Seatoun | High | Upscale family homes, modern apartments | Wealthy families, professionals | Beaches, safe community, good schools | Remote, fewer amenities |
Oriental Bay
Oriental Bay is a premium choice for property in Wellington.
Known for its expensive price tag, the area's allure stems from its picturesque beachfront views and proximity to the CBD. Properties in Oriental Bay vary from luxurious apartments to high-end houses, catering to a wealthier demographic.
The average price per square meter in Oriental Bay reflects this exclusivity. Residents are typically affluent professionals or well-established families. Strengths include its stunning scenery, vibrant local culture, and easy access to amenities.
However, the high cost of living and limited property availability are drawbacks. Despite these, Oriental Bay's charm and status are expected to sustain its hype in the property market.
Thorndon
Thorndon, one of Wellington's oldest suburbs, offers a blend of historical charm and modern living.
Housing in Thorndon is expensive due to the area's heritage properties and close proximity to the government precinct. The neighborhood hosts a mix of old villas and contemporary townhouses.
Average prices per square meter in Thorndon are high, reflecting the area's status and demand. Thorndon attracts a mix of government officials, professionals, and families who appreciate its history and central location.
The neighborhood's strengths include excellent schools and a strong sense of community. Its weaknesses lie in limited parking and busy traffic. Thorndon's established reputation suggests it will remain a sought-after area.
Seatoun
Seatoun, a coastal suburb, commands high property prices due to its serene environment and quality housing.
The area predominantly features upscale family homes and modern apartments. The average price per square meter in Seatoun is on the higher side, indicative of the suburb's desirability.
Residents are generally wealthy families and professionals seeking a peaceful lifestyle away from city bustle. Seatoun's strengths include beautiful beaches, a safe community, and good schools.
However, it's relatively remote, with fewer amenities and entertainment options compared to city-center suburbs. Despite this, Seatoun's appeal as a tranquil, upscale neighborhood is expected to endure.
Make sure you understand the real estate market in Wellington
Don't rush into buying the wrong property in New Zealand. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
Areas in Wellington that emerge as new hotspots
Let's explore these emerging neighborhoods in Wellington that, according to our local partners and our customers, are getting quite a bit of buzz lately.
| Neighborhood | Current Price Trends | Property Types | Resident Demographics | Strengths | Weaknesses |
|---|---|---|---|---|---|
| Aro Valley | Climbing | Diverse, from historic to modern | Students, young professionals, artists | Community spirit, cultural scene | Gentrification, rising costs |
| Brooklyn | Rising | Variety of family homes | Young professionals, families | Relaxed lifestyle, natural surroundings | Distance from CBD, transport access |
| Houghton Bay | Increasing | Beachside homes, family residences | Young families, professionals | Coastal views, quiet environment | Far from central, limited amenities |
Aro Valley
Aro Valley, once overlooked, is now a rising star in Wellington's property market.
Initially a more affordable, bohemian area, it has evolved into a lively, cultural hotspot. Its growing popularity stems from an influx of cafes, boutiques, and a vibrant community spirit. While still cheaper than top-tier suburbs, prices in Aro Valley are climbing due to increased demand.
Aro Valley attracts a diverse mix of students, young professionals, and artists. Its strengths include a strong sense of community and proximity to the city.
However, the area's gentrification and rising costs might be a concern. The trend of popularity is likely to continue, propelled by its unique character and ongoing developments.
Brooklyn
Brooklyn is transitioning from a quiet, family-friendly suburb to a sought-after location for young professionals and creatives.
It was initially more suburban and less expensive but has recently gained attention for its panoramic city views and local amenities. Properties in Brooklyn are generally more affordable than in premium suburbs, but prices are on the rise.
Brooklyn's main draw is its balance between a relaxed lifestyle and accessibility to the city. The demographic is shifting to include more young professionals and families. Its strengths are the community vibe and natural surroundings.
However, it's further from the CBD, and some areas lack direct public transport. Brooklyn's appeal is set to grow, especially among those seeking a blend of urban and suburban living.
Houghton Bay
Houghton Bay, previously a less conspicuous seaside area, is gaining traction for its stunning coastal views and quieter environment.
It started as a more affordable alternative to nearby suburbs but is now attracting more interest, especially from people looking for a beachside lifestyle. Property prices in Houghton Bay are relatively lower than central suburbs but are expected to increase.
The neighborhood is popular with a mix of young families and professionals. Strengths include its natural beauty and peaceful setting. The main weaknesses are its distance from central Wellington and limited amenities.
However, Houghton Bay's growing popularity, driven by its unique coastal charm, suggests it will continue to attract more buyers.
Make a profitable investment in Wellington
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Top neighborhoods in Wellington to invest in property
Areas in Wellington with a strong rental demand
If you're considering buying real estate in Wellington for renting it out, these neighborhoods with high demand for rentals should be considered.
| Neighborhood | Tenant Demographic | Property Type | Average Rent per Week | Rental Yield | Tips for Investors | Weaknesses |
|---|---|---|---|---|---|---|
| Te Aro | Young Professionals, Students | Studio/1-BR Apartments | NZD 450-550 | 5-6% | Focus on modern units | Noise, Wear and Tear |
| Karori | Families, Professionals | 3-4 BR Houses | NZD 600-750 | 4-5% | Near schools, parks | Distance from City |
| Newtown | Young Professionals, Small Families | 2-BR Houses/Apartments | NZD 500-650 | 5-6% | Close to transport | Limited Parking |
Te Aro
Te Aro is a vibrant hub, attracting a diverse mix of young professionals and students due to its proximity to Victoria University and the CBD.
The demand in Te Aro is primarily for studio or one-bedroom apartments, with tenants seeking convenience and a lively urban lifestyle. The average rental income for a one-bedroom apartment in Te Aro is around NZD 450-550 per week. The rental yield in Te Aro hovers between 5-6%, making it an attractive investment.
However, the high demand also means more wear and tear on properties. Investors should focus on well-maintained, modern units to minimize vacancy and attract quality tenants.
A potential downside is the noise and bustling nature of the area, which might not appeal to all tenant demographics.
Karori
Karori is known for its family-friendly environment, attracting long-term tenants, mainly families and working professionals.
The area has good schools and community facilities, increasing its desirability. Houses with 3-4 bedrooms in Karori are most in demand, with rental incomes ranging from NZD 600 to 750 per week.
The rental yield in Karori is around 4-5%. Investing in properties near schools or parks can maximize rental appeal.
The area's calmness and distance from the city center are appealing to tenants seeking a quieter lifestyle but can be a drawback for those preferring city life.
Newtown
Newtown is popular among young professionals and small families due to its proximity to the hospital and affordable living options.
Two-bedroom houses or apartments are most in demand in Newtown, with an average rental income of NZD 500-650 per week.
The rental yield in Newtown averages 5-6%. Properties close to public transport and amenities are highly sought after. Investors should focus on well-maintained properties to attract stable tenants.
One downside is the limited parking and smaller property sizes, which might not suit all tenant types.
Don't lose money on your property in Wellington
100% of people who have lost money in New Zealand have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Areas in Wellington where property prices might increase in the future
In these areas in in Wellington you can still find properties at a reasonable price, with room for appreciation as the neighborhoods develop.
| Neighborhood | Tenant Demographic | Property Type | Average Price per Night | Tips for Investors | Weaknesses |
|---|---|---|---|---|---|
| Oriental Bay | Tourists, Business Travelers | 2-BR Apartments | NZD 150-200 | Sea views, modern amenities | Seasonal Fluctuations |
| Wellington CBD | Tourists, Business Travelers | Studio/1-BR Apartments | NZD 120-170 | Well-furnished, central | Higher Maintenance |
| Mount Victoria | Tourists | 2-BR Houses/Apartments | NZD 140-190 | Character, modern comforts | Limited Parking |
Oriental Bay
Oriental Bay, with its picturesque beach and proximity to the city, is a prime location for short-term rentals.
Tourists and business travelers in Oriental Bay are the main tenants, looking for properties with scenic views and modern amenities. The average price per night for a two-bedroom apartment in Oriental Bay can range from NZD 150 to 200.
To maximize income, focus on properties with sea views and modern facilities.
High demand during peak seasons can offset the quieter winter months. A potential drawback is the seasonal fluctuation in tenant demand.
Wellington CBD
The CBD attracts a mix of tourists and business travelers due to its central location and access to major attractions.
Studio or one-bedroom apartments in Wellington CBD are in high demand, with nightly rates around NZD 120 to 170. Properties near tourist spots or business centers in Wellington CBD can command higher prices.
The tip for investors is to invest in well-furnished, modern apartments to attract high-paying short-term tenants.
The downside is the potential for higher maintenance costs due to frequent tenant turnover.
Mount Victoria
Mount Victoria is popular for its panoramic city views and quaint charm.
It attracts tourists seeking a blend of city life and quiet retreats. Two-bedroom houses or apartments with good views in Mount Victoria are popular, averaging NZD 140-190 per night. Properties close to lookout points and parks are particularly attractive.
Investors should focus on maintaining the property's unique character while providing modern comforts.
A limitation is the limited parking and access, which might be challenging for some tenants.
Make sure you understand the real estate market in Wellington
Don't rush into buying the wrong property in New Zealand. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.