Mt Wellington Property Market

An economic analysis of the Mt Wellington Property Market

Mount Wellington is the workhorse of Auckland’s regional economy and the Auckland property market. It is a high employment and high capital growth area, located just 10km from the central city.


Mount Wellington’s Median House Price Grew At 8.35% Per Year Between 2000 & 2018 – And Yet It Is Still Affordable As An Investment Option


The median house price of many Auckland suburbs grew at 8% or above annually since the turn of the century. What makes Mount Wellington special is that it was the only suburb in the top #20 fastest appreciating Auckland areas where the median house price is still under $800,000. The current median house price in Mt Wellington is $798,750. This means that investors can still get access to this fast appreciating suburb at a reasonable entry point.


Because Mount Wellington Has A High Capital Growth Rate, Investment Properties In The Suburb Tend To Attract A Poor Rental Yield


The median rent in Mount Wellington is currently $540 per week, and the median house price is $798,750. This suggests that the median gross yield is 3.52% annually. This is in the ball park to be expected in Auckland, but is on the lower side. This means that if investors invest in the average house, they may need to top up the property more in order to achieve that higher capital growth.


The Population Of The Maungakiekie-Tamaki Local Board Area Is Forecast To Grow At A Faster Pace Than The Rest of Auckland

The residential population of Mount Wellington’s local board area is expected to grow from 76,500 to 104,700 between 2017 and 2033 – 37% in 15 years. The wider region’s population is expected to grow by 30.75% in 20 years (2018 – 2038). This shows that Mt Wellington’s population is growing at a faster rate than NZ’s fastest growing city. This gives us confidence in the future demand for housing within Mount Wellington’s borders.


Mount Wellington Has An Exceptional Location With Great Transport Routes

Mount Wellington is located at the bottom of Auckland’s central isthmus. It connects both the South Eastern and Southern Motorways. The South Western Motorway is only a short drive away. Auckland’s eastern and southern train lines also merge in Mount Wellington and the suburb has 2 train stations (Panmure and Sylvia Park). This makes Mt Wellington a good area for commuters and businesses in which to locate themselves.


Mount Wellington Is An Extremely High Employment Area – 4x More People Work In Mount Wellington South Than Live There


Mount Wellington South has just under 6,000 residents, yet almost 24,000 paid workers are employed in the area. This is true for for most of the subdivisions that make up the wider suburb. High employment areas include Sylvia Park (NZ’s largest mall), Lunn Ave, and the light and heavy industrial zoned land in the area. The Maungakiekie- Tamaki Ward has the second highest GDP, out of 21 Auckland local board areas. This is 2nd only to the Auckland CBD area.


Auckland Council Can’t Afford To Build New Infrastructure & Increase Supply


Auckland Council has a self imposed debt ceiling of 275% of annual rates. They are currently nearing 270%. This means there is little room for Auckland Council to borrow to fund new infrastructure. This limits green fields developments and constrains supply. The majority of the extra houses for the additional 550,000 people will need to be within the city’s current limits.


My Key Takeaway and Recommendation

Like neighbouring Onehunga and Glen Innes, Mount Wellington is a fast gentrifying suburb and the growth in house prices reflect its strong fundamentals as an investment opportunity.


Other Suburbs to Pay Attention to

If you're considering other suburbs in the Auckland property market, you might also want to look into the Mangere property market and the Te Atatu South property market.