Wellington real estate market outlook for 2025: stability and moderate growth ahead
The Wellington real estate market in 2024 saw a notable shift toward greater stability, thanks to a resurgence in buyer confidence, a livelier spring season, and a steady increase in both buyer activity and stock availability. As we look ahead to 2025, these trends are expected to continue, creating a solid foundation for moderate growth in the new year.
According to Alexia Stoddart and Chris Robinson from Tommy’s Real Estate, 2024 marked a return to market equilibrium. “While growth wasn’t rapid, we did begin to see a sense of balance returning to the market. Some suburbs saw slight gains, which reflect a growing confidence among buyers,” they explain.
One of the key moments last year was September, when Wellington saw its highest level of new property listings for the month since 2020, with a 36.1% year-on-year increase. This influx of listings not only offered more choice to prospective buyers but also helped reignite spring activity. First-home buyers and investors were particularly encouraged by price stability and a relaxation of lending criteria, prompting a renewed interest in the market.
What to Expect for Wellington in 2025
So, what’s in store for the Wellington real estate market in 2025? According to Stoddart and Robinson, we can expect a year of stabilisation with moderate growth. Predictions from major banks and analysts suggest that house prices across New Zealand could rise by anywhere between 3% and 7%, with certain regions, including Wellington, likely to see modest price increases.
“In Wellington, demand from first-home buyers, lifestyle movers, and retirees will continue to drive modest price increases, particularly in high-demand areas such as Te Aro, Thorndon, and Mount Victoria,” say Stoddart and Robinson.
However, they believe 2025 will be more about consolidation than rapid growth. The emphasis will likely shift toward sustainable market practices, with gradual price increases rather than the sharp fluctuations seen in recent years. This presents a solid opportunity for buyers seeking stability and long-term investment potential.
“It’s expected to be a good year for buyers who are looking for a balanced market and a sustainable investment opportunity,” they add.
Key Drivers of the 2025 Market
Several factors are expected to influence house sales across Wellington in 2025. These include more affordable interest rates, the ongoing trend of flexible working arrangements, and the demand for homes close to transport links.
With interest rates predicted to remain stable or even decrease slightly, many buyers will return to the market with renewed confidence. This stability will likely encourage more first-home buyers and investors, leading to increased sales activity across the region.
“The shift towards working from home is also playing a significant role in shaping demand,” say Stoddart and Robinson. “Buyers are increasingly looking for properties that offer space for home offices, or those located in lifestyle-friendly areas. Suburbs with good transport links and access to outdoor amenities are likely to see a rise in interest.”
The Bottom Line
The 2025 Wellington real estate market looks set to focus on balance and strategic buying. Affordability, sustainability, and lifestyle factors will be at the forefront of decision-making, offering a promising landscape for those looking to make a stable and thoughtful investment in property.
As Stoddart and Robinson suggest, “If you’re considering buying or investing, 2025 could be the perfect year for those looking to consolidate their position in the market.”
If you’d like more specific insights tailored to particular areas or property types, don’t hesitate to get in touch. Happy house hunting!
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