Wellington Property Market

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 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 dot 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 dot ... 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.

Wellington House Prices Comparison

Are Wellington Houses Overpriced?

On average, over the last 27 years, Wellington's median house has been 104.42% 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 $104,420.

As you can see from the graph below, sometime 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 was 86.58% of the New Zealand median house price, suggesting that the median house was roughly 17.1% undervalued compared to its long term average.

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 $730,000 – it's peak – in April 2020.

Based on those, the average owner of a Wellington property saw their wealth increase by $335,000. You can see this by hovering over the data in the Wellington Median House Price graph below.

Are Wellington Houses Overpriced Right Now?

Wellington's median house price is currently 107.61% 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 $38,000 (Jan 19 - Jan 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.

Median Wellington House Price

Wellington's Median House Price is $677,510

As at May 2020, the median house price in Wellington is $677,510. This is up from $385,000 10 years earlier. That means that the median Wellington property increased in value by 5.8% each year, or $29,251 on average.

The most expensive suburb in Wellington is Seatoun, which has a median house value of $1,486,100 and is located in Wellington City district. That means that Seatoun's median house value is 2.19x Wellington's median.

The least expensive suburb in Wellington is Kuripuni, which has a median house price of $397,850 and is located in Masterton district. That means that Kuripuni's median house price is 41.3% cheaper than Wellington's median.

Over the last 20 years (Jan 2000 – Mar 2020), Cannons Creek had the fastest-growing house prices in all of Wellington, at 9.43% per year. That is 37.4% 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 3.81% per year. That’s 44.5% slower than the median Wellington house price.

Wellington City Property Market

Wellington City

Wellington is made up of 44 suburbs. The most expensive suburb is Seatoun, which has a median house price of $1,486,100. While the most affordable suburb is Wellington Central, which has a median house price of $450,250.

Over the last 20 years of all Christchurch City suburbs (Jan 2000 – Mar 2020), Newlands had the fastest-growing house, at 6.92% per year. That is 0.80% 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 3.81% per year. That’s 44.49% 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 Days Bay, which has a median house price of $1,001,500. While the most affordable suburb is Moera, which has a median house price of $498,950.

Over the last 20 years of all Lower Hutt suburbs (Jan 2000 – Mar 2020), Wainuiomata had the fastest-growing house, at 8.25% per year. That is 20.23% faster than the median Wellington house price.

The suburb that grew the slowest over that period was Eastbourne, which grew at a rate of 5.19% per year. That’s 24.41% 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 $806,800. While the most affordable suburb is Maoribank, which has a median house price of $526,600.

Over the last 20 years of all Upper Hutt suburbs (Jan 2000 – Mar 2020), Wallaceville had the fastest-growing house, at 7.56% per year. That is 10.16% faster than the median Wellington house price.

The suburb that grew the slowest over that period was Silverstream, which grew at a rate of 6.37% per year. That’s 7.21% slower than 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 $967,400. While the most affordable suburb is Waitangirua, which has a median house price of $444,700.

Over the last 20 years of all Porirua City suburbs (Jan 2000 – Mar 2020), Cannons Creek had the fastest-growing house, at 9.43% per year. That is 37.39% faster than the median Wellington house price.

The suburb that grew the slowest over that period was Whitby, which grew at a rate of 5.44% per year. That’s 20.67% 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 $738,150. While the most affordable suburb is Otaki Beach, which has a median house price of $477,600.

Over the last 20 years of all Kapiti Coast suburbs (Jan 2000 – Mar 2020), Otaki Beach had the fastest-growing house, at 7.36% per year. That is 7.30% 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 5.80% per year. That’s 15.44% 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 Castle Point, which has a median house price of $571,700. While the most affordable suburb is Kuripuni, which has a median house price of $397,850.

Over the last 20 years of all Masterton suburbs (Jan 2000 – Mar 2020), Kuripuni had the fastest-growing house, at 7.67% per year. That is 11.76% faster than the median Wellington house price.

The suburb that grew the slowest over that period was Lansdowne, which grew at a rate of 7.13% per year. That’s still 3.83% 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 $678,150. While the most affordable suburb is Featherston, which has a median house price of $421,000.

Over the last 17 years of all South Wairarapa suburbs (Mar 2003 – Mar 2020), Featherston had the fastest-growing house, at 8.92% per year. That is 28.10% faster than the median Wellington house price.

The suburb that grew the slowest over that period was Greytown, which grew at a rate of 7.88% per year. That’s still 13.15% faster than the median Wellington house price over the same period.

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 $465,550.

Over the last 20 years (Jan 2000 – Mar 2020) Carterton house values grew by 7.71% per year. That is 12.40% 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 Hamilton property market and the Christchurch property market by clicking any of the links mentioned here.