How Is The Wellington Property Market Going...Right Now?

Find out the average house price in wellington before you buy or invest in the Wellington property market.
Last updated 27th January 2022.

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Ed McKnight

Economist, property investor and host of the Property Academy Podcast
Introduction

Looking to Invest or buy in the Wellington property market?

This article breaks down all the most essential facts about the Wellington property market.

The Wellington property market is made up of 8 districts and 121 suburbs. These districts are Wellington City, Lower Hutt, Upper Hutt, Porirua, Kapiti Coast, Carterton, Masterton and South Wairarapa.

Wellington house prices 2022
Wellington House Price Growth by Suburb

Where Do House Prices Grow the Fastest in the Wellington Property Market?

Which Wellington Suburbs Grow in Value The Fastest? This map lets you find out for yourself. Double click on the map below to zoom in and explore different suburbs.

Each area represents a different suburb, and the colour of the dot represents how quickly house prices have increased over the past 20+ years.

The redder the area ... the quicker house prices have grown in that suburb.

Gross Yields of Wellington Suburbs

Which Wellington Suburbs Have the Highest Yields?

Gross yields vary widely depending on which suburb you chose to investigate.

So, which suburbs in the Wellington property market have the highest gross rental yields?

Navigate the map to find the suburbs where houses produce the most cash for their investors.

Fastest Growing Suburbs

House Price Increase Ranges From 4.55% - 10.79% Based on Suburb. But Which Were the Fastest?

The median house price in Wellington grew at 9.99% between Jan 2000 and Dec 2021 ($184,700 to $1,000,000).

However, house price growth varied widely in different suburbs.

Within that period, the median property in Cannons Creek grew at 10.79% – the fastest in the Wellington region.

These houses grew in value from $72,500 to $690,650– meaning that Cannons Creek homeowners earned $618,150 within the period. That is almost $29,098 a year.

The slowest growing suburb was Wellington Central, which grew at 4.55%, from $211,200 to $562,550. That's a total of $351,350- just over $15,970 a year.

The other suburbs that grew the fastest were:

The suburbs that grew the slowest were:

Median Wellington House Price

Wellington's Median House Price is $1,000,000

As at December 2021, the median house price in Wellington is $1,000,000. This is up from $392,500 from 11 years earlier. That means that the median Wellington property increased in value by 9.75% each year.

The most expensive suburb in Wellington is Seatoun, which has a median house value of $2,112,000 and is located in Wellington City district. That means that Seatoun's median house value is 81.66% more expensive than Wellington's median house price.

Wellington property market 2022

The least expensive suburb in Wellington is Wellington Central, which has a median house price of $562,550 and is located in the Wellington City district. That means that Wellington Central's median house price is 51.61% cheaper than Wellington's median.

Over the last 22 years (Jan 2000 – Dec 2021), Cannons Creek had the fastest-growing house prices in all of Wellington, at 10.79% per year. That is 37.26% faster than the median Wellington house price.

The suburb that grew the slowest over that period was Wellington Central, which grew at a rate of 4.55% per year. That’s 42.06% slower than the median Wellington house price.

Wellington House Prices Comparison

Are Wellington Houses Overpriced? Wellington's Median House Price is 2.37% above its long term average

On average, over the last 29 years, Wellington's median house has been 104.59% of New Zealand's median house price.

To put this in simple term, if the median house price in New Zealand was $100,000, we'd expect Wellington's median house price to be $104,590.

As you can see from the graph below, sometimes Wellington house prices are above that long term average and sometimes they're below this average. But, over the long term, you would expect that Wellington house prices would trackback to that long term average.

If that's true, that means that you can use this comparison to check whether a region appears to be overvalued or undervalued compared to its long term average.

If Wellington is overvalued, the dark blue line will be above the light blue line. If Wellington is undervalued, the opposite will be correct.

In July 2015, Wellington's median house price for the previous 12 months was 92.11% of the New Zealand median house price, suggesting that the median house was roughly 12.42% undervalued compared to its long term average at the time.

Perhaps, it's not surprising then that the region saw enormous capital growth in the following five years.

During that time, the median house price increased from $395,000 to $790,000 – it's peak – in November 2020.

Based on those, the average owner of a Wellington property saw their wealth increase by $395,000. You can see this by hovering over the data in the Wellington Median House Price graph below.

Wellington house prices NZ

Are Wellington Houses Overpriced Right Now?

Wellington's median house price is currently 106.79% of the national median house price. While above its long term average, it's not far from away from it. And it should be pointed out that during the last 12 months although the Wellington house price has been stable relative to the national median price ... the region's median house price still went up by $100,500 (Nov 19 - Nov 20).

In essence, both the NZ and Wellington median house prices were increasing at the same time.

This analysis doesn't suggest that Wellington is overpriced or that it won't see future house price increases. However, it does indicate that there may be property investment opportunities outside the Wellington Property Market for long-term buy and hold investors.

Council Breakdown - Over/Undervalued

Where are House Prices Most Over and Undervalued within the Wellington Region?

This map shows a breakdown of how over or under-valued each council area is right now in the Wellington property market. These figures are calculated exactly the same way as the graph in the above section.

South Wairarapa District appears to be the most over-valued. House prices there are about 37.79% above where we would usually expect them to be over the long term.

Property market in Wellington

Wellington City, on the other hand, appears to be under-valued. House prices in this district appear to be just 2.08% below where we would expect them to be.

This means that we've got greater confidence that Wellington City would receive a higher rate of capital growth (house price increases) over the next 5-10 years compared to South Wairarapa.

Affordability

Where Are the Most Affordable Properties In Wellington?

The map below depicts which districts within the Wellington Region have the most and least affordable house prices (REINZ, December 2021).

The darker the district, the more expensive the average house price for that area...

The Wellington City district is by far the most expensive district within the Wellington region, with properties reaching an average price of $1,161,000 (December 2021).

By comparison, the Carterton District is the most affordable, with an average house price of just $575,000. That's an enormous $586,000 difference compared to Wellington City.

Population Growth

Which Part of Wellington Gets the Highest Population Growth?

The map below illustrates the projected population growth for each district within the Wellington Region over the next 25 years (2018 - 2043).

The darker the district, the more the population is predicted to shrink in that area...

Over this period, Wellington City is expected to see the most growth of all the council areas within the region - 17.67% in total.

By contrast, Lower Hutt City is expected to expand by just 1.62% over the same timeframe.

Wellington City

Wellington City Property Market

Wellington is made up of 44 suburbs. The most expensive suburb is Seatoun, which has a median house price of $2,112,000. While the most affordable suburb is Wellington Central, which has a median house price of $562,550.

Over the last 22 years of all Wellington City suburbs (Jan 2000 – Dec 2021), Newlands had the fastest-growing house, at 8.16% per year. That is 5.56% faster than the median Wellington house price.

The suburb that grew the slowest over that period was Wellington Central, which grew at a rate of 4.55% per year. That’s 41.08% slower than the median Wellington house price.

Lower Hutt Property Market

Lower Hutt Property Market

Lower Hutt is made up of 28 suburbs. The most expensive suburb is Woburn, which has a median house price of $1,406,400. While the most affordable suburb is Taita, which has a median house price of $781,450.

Over the last 22 years of all Lower Hutt suburbs (Jan 2000 – Dec 2021), Wainuiomata had the fastest-growing house, at 9.75% per year. That is 26.22% faster than the median Wellington house price.

The suburb that grew the slowest over that period was Eastbourne, which grew at a rate of 6.52% per year. That’s 15.67% slower than the median Wellington house price.

Upper Hutt Property Market

Upper Hutt Property Market

Upper Hutt is made up of 15 suburbs. The most expensive suburb is Riverstone Terraces, which has a median house price of $1,234,500. While the most affordable suburb is Maoribank, which has a median house price of $780,200.

Over the last 22 years of all Upper Hutt suburbs (Jan 2000 – Dec 2021), Trentham had the fastest-growing house, at 8.92% per year. That is 15.45% faster than the median Wellington house price.

The suburb that grew the slowest over that period was Silverstream, which grew at a rate of 7.73% per year. That’s on par with the median Wellington house price.

Porirua Property Market

Porirua Property Market

Porirua City is made up of 13 suburbs. The most expensive suburb is Aotea, which has a median house price of $1,475,550. While the most affordable suburb is Waitangirua, which has a median house price of $668,100.

Over the last 22 years of all Porirua City suburbs (Jan 2000 – Dec 2021), Cannons Creek had the fastest-growing house, at 10.79% per year. That is 39.60% faster than the median Wellington house price.

The suburb that grew the slowest over that period was Plimmerton, which grew at a rate of 6.69% per year. That’s 13.45% slower than the median Wellington house price.

Kapiti Coast Property Market

Kapiti Coast Property Market

Kapiti Coast is made up of 13 suburbs. The most expensive suburb is Waikanae Beach, which has a median house price of $1,111,900. While the most affordable suburb is Otaki, which has a median house price of $721,850.

Over the last 22 years of all Kapiti Coast suburbs (Jan 2000 – Dec 2021), Otaki Beach had the fastest-growing house, at 8.85% per year. That is 14.45% faster than the median Wellington house price.

The suburb that grew the slowest over that period was Paraparaumu Beach, which grew at a rate of 7.25% per year. That’s 6.25% slower than the median Wellington house price.

Masterton Property Market

Masterton Property Market

Masterton is made up of 6 suburbs. The most expensive suburb is Castlepoint, which has a median house price of $828,800. While the most affordable suburb is Kuripuni, which has a median house price of $618,250.

Over the last 22 years of all Masterton suburbs (Jan 2000 – Dec 2021), Kuripuni had the fastest-growing house, at 9.20% per year. That is 19.10% faster than the median Wellington house price.

The suburb that grew the slowest over that period was Lansdowne, which grew at a rate of 8.54% per year. That’s still 10.53% faster than the median Wellington house price over the same period.

South Wairarapa Property Market

South Wairarapa Property Market

South Wairarapa is made up of 3 suburbs. The most expensive suburb is Greytown, which has a median house price of $970,400. While the most affordable suburb is Featherston, which has a median house price of $659,750.

Over the last 2 years, of all South Wairarapa suburbs (Dec 2019 – Dec 2021), Featherston had the fastest-growing house, at 27.29% per year. The suburb that grew the slowest over that period was Greytown, which grew at a rate of 21.35% per year.

Carterton Property Market

Carterton Property Market

The Carterton district is made up of 1 suburb, also named Carterton, which has a median house price of $694,000.

Over the last 21 years (Jan 2000 – Dec 2021) Carterton house values grew by 9.04% per year. That is 16.97% faster than the median Wellington house price.

Other Property Markets

Other Property Markets to Look Into

If you found this article useful, then you might also like our analyses on the other property markets in New Zealand. You can read all about the Auckland property market, the Wellington property market and the Christchurch property market by clicking any of the links mentioned here.

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Who are Opes Partners and can they help me?

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Ed McKnight

Ed McKnight is the host of the Property Academy Podcast – NZ's #1 business podcast. He is an economist, having studied at the University of Auckland and the University of Waikato. He's a frequent writer for Informed Investor Magazine and has contributed to NewsHub, Stuff, OneRoof and Property Investor Magazine.