Wellington Market Update | December 2023
It looks like being a happy new year for the Wellington housing market, with both buyers and sellers becoming more motivated after 12 months of uncertainty.
Tommy’s Real Estate Sales Director Tim Clark says 2023 was “an interesting year” for real estate in not only Wellington but also the rest of the country.
“The market conditions in December are quite different to what they were in January,” he points out.
“We now have more stability and confidence with interest rates levelling, prices stabilising, and the election now completed.
“The demand is now strong, and we have seen more new listings come to the market.
“While we still need more listings to satisfy current demand, people seem to be ‘ready to get on with things.’”
Data analytics company CoreLogic reports Wellington, along with Auckland, Hamilton, Tauranga and Christchurch, all saw monthly property value rises in the range of 0.7 per cent – 0.9 per cent in November while Dunedin’s rose by 1.9 per cent.
CoreLogic says Wellington property values dropped significantly during the downturn but have started to turn around relatively promptly.
For instance, average values in Lower Hutt and Porirua jumped by 1.5 per cent in November, and Porirua’s are up almost five per cent in the past three months.
Tim anticipates the “positive momentum” in the Wellington real estate market will continue in 2024.
“While predicting market dynamics can be challenging, we foresee a continued, steady growth in property prices, a healthier balance of new listings, and sustained demand.”
This demand isn’t limited to one type of property but extends across different segments.
“Family homes continue to be sought after, reflecting the city’s appeal for families,” Tim says. “New builds also continue to be popular.
“Additionally, there is notable interest in inner-city living, catering to those seeking a vibrant urban lifestyle.
“First homes also remain a significant focus and we are committed to helping first-home buyers navigate the market.
“And with the new government adopting an investor-friendly stance, we anticipate a positive response from investors in the real estate market.
“This could lead to increased activity as investors may be more inclined to re-enter the market.”
Could Wellington’s real estate impetus be jeopardised by the government’s plans to reduce the civil service and cut back on consultants and contractors?
“Cutbacks to the civil service can influence the Wellington real estate market,” Tim acknowledges, “as changes to employment and population dynamics often impact housing demand.
“However, it is also worth recognising that the civil service population in Wellington is actually a small percentage of our total population and we foresee a number of people may be re-deployed into the new projects and ministries that new government want to focus on.”
Connect me with a local expert
Whether you’re ready to sell or looking for answers, we’ll guide you with data-driven strategy paired with over 20 years of industry experience
Book a free appraisal
