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
Wellington's property market has moved into a stabilization phase after the sharp correction from its 2021-2022 peak, and early 2026 is showing signs of renewed buyer confidence.
Foreign buyers face tight restrictions on purchasing residential property in New Zealand, so understanding your legal pathway before choosing a neighborhood is essential.
We constantly update this blog post to reflect the latest data on Wellington's real estate market, rental yields, and neighborhood trends.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Wellington.
What's the Current Real Estate Market Situation by Area in Wellington?
Which areas in Wellington have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas for property in Wellington are Oriental Bay, Roseneath, and Kelburn, where waterfront access, harbour views, and proximity to the CBD push prices to a premium.
In these top Wellington neighborhoods, you can expect to pay between NZ$11,000 and NZ$18,000 per square meter for quality homes, with exceptional view lots in Oriental Bay sometimes exceeding this range.
Each of these expensive Wellington areas commands high prices for different reasons:
- Oriental Bay: Wellington's only sandy beach within walking distance of the CBD creates irreplaceable scarcity.
- Roseneath: Steep hillside sites with panoramic harbour views cannot be replicated or expanded.
- Kelburn: The cable car corridor plus Victoria University proximity attracts both families and investors.
- Mount Victoria: Heritage villas with city views and genuine walkability to entertainment precincts.
- Thorndon: Parliament and government office adjacency makes this the address for senior public servants.
Which areas in Wellington have the most affordable property prices in 2026?
As of early 2026, the most affordable Wellington neighborhoods for property buyers are Tawa, Newlands, Johnsonville, and Grenada Village, where prices typically run 40% to 50% below the inner-city premium suburbs.
In these more affordable Wellington areas, you can find properties priced between NZ$5,500 and NZ$8,000 per square meter, giving buyers significantly more space for their money.
The main trade-off in these lower-priced Wellington suburbs is commuting time and reduced walkability. In Tawa, you gain space but face a 25-minute train ride to the CBD. In Johnsonville, bus connections are good but amenities feel suburban. In Grenada Village, newer housing stock comes with limited local cafes and shops.
You can also read our latest analysis regarding housing prices in Wellington.
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.
Which Areas in Wellington Offer the Best Rental Yields?
Which neighborhoods in Wellington have the highest gross rental yields in 2026?
As of early 2026, the Wellington neighborhoods delivering the highest gross rental yields are Newtown at around 5% to 6%, Mount Cook at 4.5% to 5.5%, Kilbirnie at 4% to 5%, and Johnsonville at 4% to 5%.
Across Wellington as a whole, typical gross rental yields for residential investment properties range from about 3% in premium suburbs like Oriental Bay up to 6% in well-located apartment buildings near hospitals or universities.
These high-yield Wellington neighborhoods outperform others because they combine affordable purchase prices with strong tenant demand:
- Newtown: Wellington Hospital creates constant demand from healthcare workers needing short commutes.
- Mount Cook: Students and young professionals pay premium rents for walkable CBD access.
- Kilbirnie: Airport proximity and retail amenities attract reliable working tenants.
- Johnsonville: Large renter pool of families seeking suburban space at reasonable prices.
- Tawa: Commuter rail access delivers solid yields for investors targeting family renters.
Finally, please note that we cover the rental yields in Wellington here.
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Which Areas in Wellington Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Wellington perform best on Airbnb in 2026?
As of early 2026, the Wellington neighborhoods performing best on Airbnb are Te Aro near Courtenay Place with occupancy rates around 55% to 60%, Mount Victoria at 50% to 55%, Oriental Bay at 45% to 55%, and Miramar at 45% to 50%, with average nightly rates ranging from NZ$120 to NZ$180.
In these top-performing Wellington Airbnb locations, hosts can expect monthly revenues between NZ$1,500 and NZ$3,000 depending on property size, amenities, and seasonal timing.
Each of these Wellington neighborhoods attracts short-term guests for distinct reasons:
- Te Aro (Cuba Street area): Guests walk to restaurants, bars, and entertainment without needing transport.
- Mount Victoria: Character homes with views appeal to couples seeking authentic Wellington atmosphere.
- Oriental Bay: Waterfront lifestyle attracts premium rates from visitors wanting scenic morning walks.
- Miramar: Film tourism, airport convenience, and beach access draw a reliable guest mix.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Wellington.
Which tourist areas in Wellington are becoming oversaturated with short-term rentals?
The Wellington areas showing signs of short-term rental oversaturation are Te Aro's dense apartment zones, Wellington Central CBD towers, and parts of Courtenay Place where similar listings compete directly against each other.
In Te Aro alone, there are now over 800 active short-term rental listings, with Wellington Central adding another 400 to 500 listings concentrated in a small geographic area.
The clearest sign of oversaturation in these Wellington areas is that average occupancy has dropped below 50% for generic one-bedroom apartments while hosts increasingly offer steep discounts to secure bookings during shoulder seasons.
We have made this infographic to give you a quick and clear snapshot of the property market in New Zealand. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which Areas in Wellington Are Best for Long-Term Rentals?
Which neighborhoods in Wellington have the strongest demand for long-term tenants?
The Wellington neighborhoods with the strongest long-term tenant demand are Thorndon, Newtown, Kelburn, and Kilbirnie, where institutional employment anchors create consistent rental pressure year-round.
In these high-demand Wellington rental markets, well-maintained properties typically find tenants within two to three weeks, with vacancy rates running below 2% in the most sought-after streets.
Each neighborhood attracts a distinct tenant profile:
- Thorndon: Government workers and political staff seeking walking distance to Parliament.
- Newtown: Hospital nurses, doctors, and medical students wanting short commutes to work.
- Kelburn: University academics, postgraduate students, and young professionals near campus.
- Kilbirnie: Airport workers, retail employees, and families needing suburban amenities.
- Karori: Families with children prioritizing school catchment zones over CBD proximity.
The key amenity making these Wellington neighborhoods attractive to long-term tenants is reliable public transport connections. In Thorndon and Kelburn, this means frequent bus services. In Kilbirnie and Newtown, multiple bus routes converge. In Karori, good bus frequency offsets the distance from the CBD.
Finally, please note that we provide a very granular rental analysis in our property pack about Wellington.
What are the average long-term monthly rents by neighborhood in Wellington in 2026?
As of early 2026, average monthly rents in Wellington range from around NZ$2,300 in outer suburbs like Tawa and Johnsonville up to NZ$3,800 or more in premium inner neighborhoods like Mount Victoria and Thorndon.
For entry-level apartments in Wellington's more affordable neighborhoods like Newlands or Johnsonville, expect to pay between NZ$1,800 and NZ$2,400 per month for a basic one or two-bedroom unit.
In mid-range Wellington neighborhoods like Newtown, Kilbirnie, or Mount Cook, typical two-bedroom apartments or small townhouses rent for between NZ$2,400 and NZ$3,200 per month.
In Wellington's most expensive rental neighborhoods like Oriental Bay, Thorndon, or Mount Victoria, quality two-bedroom apartments and character homes command between NZ$3,200 and NZ$4,500 per month.
You may want to check our latest analysis about the rents in Wellington here.
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Which Are the Up-and-Coming Areas to Invest in Wellington?
Which neighborhoods in Wellington are gentrifying and attracting new investors in 2026?
As of early 2026, the Wellington neighborhoods showing the clearest gentrification signals are Newtown, Berhampore, Brooklyn, and Kilbirnie, where improving amenities and spillover demand from expensive inner suburbs are attracting renovation-minded buyers.
These gentrifying Wellington neighborhoods have seen annual price appreciation of around 3% to 6% over the past two years, outperforming the broader Wellington market which remained largely flat during the same period.
Which areas in Wellington have major infrastructure projects planned that will boost prices?
The Wellington areas most likely to benefit from major infrastructure investment are Thorndon, Te Aro, Newtown, and the Kilbirnie-Miramar corridor, where transport upgrades will reduce commute friction and improve livability.
Key infrastructure projects include the SH1 Wellington Improvements affecting regional access, and the broader Let's Get Wellington Moving programme targeting mass transit, cycling infrastructure, and corridor improvements across the city.
Historically, Wellington suburbs that gained improved transport links have seen property price premiums of 5% to 15% within three to five years of project completion, with the largest gains in previously underserved areas.
You'll find our latest property market analysis about Wellington here.
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.
Which Areas in Wellington Should I Avoid as a Property Investor?
Which neighborhoods in Wellington with lots of problems I should avoid and why?
The Wellington areas that property investors should approach with caution are flood-prone pockets within otherwise good suburbs, low-lying coastal strips with sea-level rise exposure, and older CBD apartment buildings with uncertain seismic compliance.
Each problem area in Wellington requires different due diligence:
- Kilbirnie catchment flood zones: Properties in mapped flood areas face insurance difficulties and resale discounts.
- Miramar coastal strips: Long-term sea-level projections threaten insurability and lending terms.
- Te Aro older apartments: High body corporate fees and seismic upgrade uncertainty reduce returns.
- Wellington Central CBD towers: Investor-heavy buildings suffer weak resale liquidity in downturns.
- Karori stream-adjacent properties: Flash flood risk requires careful site-specific checking.
For these Wellington problem areas to become viable investments, you would need to see either council flood mitigation infrastructure, updated seismic strengthening at reasonable body corporate cost, or significantly discounted purchase prices that compensate for the ongoing risks.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Wellington.
Which areas in Wellington have stagnant or declining property prices as of 2026?
As of early 2026, the Wellington areas showing the most price stagnation are CBD apartment pockets in Wellington Central, parts of Te Aro with high investor ownership, and some outer suburbs with limited amenity improvements.
These stagnating Wellington areas have seen price declines of around 10% to 20% from the 2021-2022 peak, and unlike family-oriented suburbs, they have not yet shown clear recovery signals.
The underlying causes of price weakness differ by area:
- Wellington Central apartments: Oversupply of similar one-bedroom units competing for limited buyer pool.
- Te Aro investor stock: Rising body corporate costs and seismic concerns have deterred new buyers.
- Grenada Village: Limited public transport and amenity growth has capped demand.
- Churton Park: Distance from employment centres makes it sensitive to interest rate increases.
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Which Areas in Wellington Have the Best Long-Term Appreciation Potential?
Which areas in Wellington have historically appreciated the most recently?
The Wellington areas that have historically shown the strongest long-term appreciation are Kelburn, Mount Victoria, Thorndon, and Karori, where persistent scarcity and strong owner-occupier demand have supported values through market cycles.
These top-performing Wellington neighborhoods have delivered different appreciation profiles:
- Kelburn: Approximately 60% to 80% total appreciation over the past decade due to university proximity.
- Mount Victoria: Around 50% to 70% decade appreciation driven by heritage character and walkability.
- Thorndon: Roughly 55% to 75% growth supported by government sector employment stability.
- Karori: About 45% to 65% appreciation reflecting family demand and school catchment value.
The main driver behind above-average appreciation in these Wellington suburbs is constrained supply combined with resilient demand. Unlike investor-heavy areas, these neighborhoods attract owner-occupiers who hold through downturns rather than selling at the first sign of weakness.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Wellington.
Which neighborhoods in Wellington are expected to see price growth in coming years?
The Wellington neighborhoods expected to see the strongest price growth over the coming years are Newtown, Kilbirnie, Miramar, and Johnsonville, where improving infrastructure and steady tenant demand create favorable conditions for appreciation.
Projected growth rates vary by neighborhood fundamentals:
- Newtown: Expected 4% to 6% annual growth driven by hospital expansion and gentrification momentum.
- Kilbirnie: Projected 3% to 5% annual gains as transport corridor improvements take effect.
- Miramar: Anticipated 3% to 5% growth from film industry stability and airport proximity.
- Johnsonville: Forecast 2% to 4% appreciation if planned transport reliability improvements proceed.
The single most important catalyst for future price growth in these Wellington neighborhoods is the completion of transport infrastructure projects that reduce commute times to the CBD, making these areas more attractive to professional tenants and owner-occupiers alike.
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 Do Locals and Expats Really Think About Different Areas in Wellington?
Which areas in Wellington do local residents consider the most desirable to live?
The Wellington areas that local residents consistently rate as most desirable are Kelburn, Mount Victoria, Thorndon, Karori, and Khandallah, according to survey data and market behavior.
Each neighborhood appeals to locals for distinct reasons:
- Kelburn: Established families value the Botanic Garden access, university atmosphere, and cable car.
- Mount Victoria: Young professionals prize the village feel, character homes, and walking paths.
- Thorndon: Senior government workers appreciate the heritage streetscapes and Parliament proximity.
- Karori: Families prioritize the school catchments, larger sections, and community feel.
- Khandallah: Established professionals seek the hilltop views, train access, and village atmosphere.
These locally-preferred Wellington suburbs attract mostly established professionals, government workers, and families with children who prioritize stability over investment returns.
Local Wellington preferences often align with what foreign investors target in terms of quality, but locals tend to value school zones and community connections more highly than rental yield potential.
Which neighborhoods in Wellington have the best reputation among expat communities?
The Wellington neighborhoods with the best reputation among expat communities are Te Aro, Thorndon, Mount Victoria, Kelburn, and Oriental Bay, where walkability and apartment availability reduce the friction of settling in a new city.
Expats prefer these Wellington neighborhoods for practical reasons:
- Te Aro: Furnished apartments, walkable lifestyle, and short-lease flexibility suit newcomers.
- Thorndon: Government and diplomatic workers find colleagues nearby and quality housing stock.
- Mount Victoria: Close-in character living appeals to professionals seeking authentic Wellington experience.
- Kelburn: University-affiliated expats value campus proximity and established rental market.
- Oriental Bay: Higher-budget expats appreciate waterfront lifestyle and prestige address.
The typical expat profile in these Wellington neighborhoods includes government contractors, university researchers, tech workers on temporary assignments, and diplomatic staff on multi-year postings.
Which areas in Wellington do locals say are overhyped by foreign buyers?
The Wellington areas that locals most commonly describe as overhyped by foreign buyers are generic CBD apartments, Oriental Bay for investment purposes, and waterfront-marketed properties with coastal hazard exposure.
Locals believe these Wellington areas are overvalued for specific reasons:
- Wellington Central apartments: Body corporate fees and seismic risks often surprise foreign buyers.
- Oriental Bay investment units: Yields are too low to justify premium prices for rental returns.
- Coastal view properties: Long-term insurance and sea-level risks are underpriced by optimistic buyers.
Foreign buyers typically focus on view amenity and waterfront marketing in Wellington, while locals place more weight on practical factors like building maintenance history, body corporate health, and genuine walkability to daily amenities.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Wellington.
Which areas in Wellington are considered boring or undesirable by residents?
The Wellington areas that residents most commonly describe as boring or undesirable are Churton Park, Grenada Village, and parts of outer Newlands, where limited walkability and fewer cafes create a quieter suburban atmosphere.
Residents find these Wellington areas less exciting for understandable reasons:
- Churton Park: Car-dependent layout with few local dining or entertainment options.
- Grenada Village: Newer housing but isolated location with minimal community amenities.
- Outer Newlands: Family-focused quiet streets that lack the buzz of inner suburbs.
However, these "boring" Wellington suburbs can offer excellent value for investors targeting family renters who prioritize space and affordability over nightlife and walkability.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Wellington, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Reserve Bank of New Zealand | New Zealand's central bank setting the policy rate that drives mortgage pricing. | We used the OCR to explain why Wellington demand shifts when rates change. We anchored cost-of-borrowing context to official monetary policy decisions. |
| LINZ Overseas Investment Office | Official government guidance for foreign buyers and consent requirements. | We summarized what foreign buyers can and cannot purchase in Wellington. We used it to set realistic investment options before discussing neighborhoods. |
| Cotality (CoreLogic NZ) | Major property data provider using hedonic index methodology. | We used it to anchor Wellington's cycle position and distance from peak values. We cross-checked suburb-level patterns against their citywide data. |
| QV House Price Index | Long-standing New Zealand property valuation provider with national coverage. | We used it to cross-check market momentum and compare Wellington to other regions. We treated it as a second opinion alongside CoreLogic data. |
| MBIE Tenancy Services | Official government dataset covering actual rents and bonds lodged across New Zealand. | We used it as our backbone for rent levels because it reflects achieved rents, not listing asks. We combined it with suburb prices to compute gross yields. |
| Wellington City Council State of Housing | Official city housing evidence pack compiled from multiple credible datasets. | We used it to frame Wellington-specific dynamics like dwelling mix and affordability. We treated it as triangulation when private datasets disagreed. |
| WCC Flood Zones Data | Official local hazard dataset used for planning and risk mapping. | We used it to flag areas where flooding probability creates investment risk. We translated this into practical suburb-level caution for buyers. |
| Waka Kotahi NZTA | National transport agency with official project documentation. | We used it to identify transport upgrades that can shift suburb desirability. We only included projects with confirmed agency pages. |
| AirDNA | Widely used short-term rental data vendor with consistent methodology. | We used it to anchor Wellington-wide STR metrics like occupancy and average daily rate. We layered neighborhood logic on top of their citywide data. |
| Quality of Life Project | Multi-council survey with documented sampling and fieldwork methodology. | We used it to understand what Wellington locals actually value in neighborhoods. We treated it as evidence rather than relying on social media opinions. |
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