Wellington - Housing and Real Estate

Housing and Real Estate

Wellington experienced a real estate boom in the early 2000s and the effects of the international property bust at the start of 2007. In 2005, the market was described as "robust". But by 2008, property values had declined by about 9.3% over a 12-month period, according to one estimate. More expensive properties declined more steeply in price, sometimes by as much as 20%. "From 2004 to early 2007, rental yields were eroded and positive cash flow property investments disappeared as house values climbed faster than rents. Then that trend reversed and yields slowly began improving," according to two New Zealand Herald reporters writing in May 2009. In the middle of 2009, house prices had dropped, interest rates were low, and buy-to-let property investment was again looking attractive, particularly in the Lambton precinct, according to these two reporters.

A Wellington City Council survey conducted in March 2009 found the typical central city apartment dweller was a New Zealand native aged 24 to 35 with a professional job in the downtown area, with household income higher than surrounding areas. Three quarters (73%) walked to work or university, 13% travelled by car, 6% by bus, 2% bicycled (although 31% own bicycles), and did not travel very far since most (73%) worked or studied in the central city. The large majority (88%) did not have children in their apartments; 39% were couples without children; 32% were single-person households; 15% were groups of people flatting together. Most (56%) owned their apartment; 42% rented (of renters, 16% paid $351 to $450 per week, 13% paid less and 15% paid more – only 3% paid more than $651 per week). The report continued: "The four most important reasons for living in an apartment were given as lifestyle and city living (23%), close to work (20%), close to shops and cafes (11%) and low maintenance (11%) ... City noise and noise from neighbours were the main turnoffs for apartment dwellers (27%), followed by a lack of outdoor space (17%), living close to neighbours (9%) and apartment size and a lack of storage space (8%)."

Wellington households are primarily one-family, making up two thirds (67%) of households, followed by single-person households (25%); there were fewer multiperson households and even fewer households containing two or more families. These counts are from the 2006 census and pertain to the Wellington region (which includes the surrounding area in addition to the four cities).