Wellington Market Update | December 2023
The Wellington housing market looks set for a happy new year, with both buyers and sellers becoming more motivated after 12 months of uncertainty.
Tim Clark, Sales Director at Tommy’s Real Estate, describes 2023 as “an interesting year” for real estate not only in Wellington but across the entire 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 that Wellington, along with Auckland, Hamilton, Tauranga, and Christchurch, all saw monthly property value rises in the range of 0.7 to 0.9 per cent in November, while Dunedin’s rose by 1.9 per cent. CoreLogic notes that Wellington property values dropped significantly during the downturn but have started to recover relatively quickly. For instance, average values in Lower Hutt and Porirua jumped by 1.5 per cent in November, and Porirua’s values 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 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.”
Tim also anticipates a positive response from investors, as the new government adopts an investor-friendly stance. “This could lead to increased activity as investors may be more inclined to re-enter the market.
Could Wellington’s real estate momentum 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. We foresee a number of people may be redeployed into the new projects and ministries that the new government wants to focus on.”
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