March Market Update

The latest figures from the Real Estate Institute of New Zealand (REINZ) for February 2025 indicate growing stability in the property market, with an increase in sales and auction activity nationwide. As New Zealand transitions out of the holiday period, momentum is building, and market confidence appears to be strengthening.

Wellington Market Insights

• Median price: Wellington’s median house price saw a slight decrease of 0.5% year-on-year, now sitting at $795,000.
• Buyer activity: First-home buyers were the most active, while investor activity declined as more landlords sold their properties due to local rate increases and rental market pressures.
• Market sentiment: While some vendors expected property values to rise due to easing interest rates, prices have remained relatively stable. Attendance at open homes was average, with a preference for private viewings.
• Investor trends: The market continues to be influenced by an increase in new builds and declining rent prices, pushing many investors to sell their properties.

The current median days to sell in Wellington is 45 days, higher than the 10-year average of 39 days for February. Inventory levels also increased, with 15 weeks’ worth of stock available, two weeks more than the same period last year.

Lower Hutt Market Update

The Lower Hutt market remained active throughout February, with steady buyer interest and increased stock levels.

• Median price: $723,000, reflecting relative stability in pricing compared to surrounding regions.
• Sales count: 122 properties sold in February 2025, showing strong buyer demand.
• Median days to sell: 51 days, indicating a slightly slower market compared to Wellington but in line with seasonal trends.

First-home buyers continued to drive demand in Lower Hutt, particularly in entry-level price brackets. Well-presented homes in desirable suburbs attracted significant interest, while higher-end properties took longer to secure buyers. Investors remain cautious, with some opting to sell due to rental yield pressures and increased housing supply.

While demand remains steady, the increase in available listings has provided buyers with more choice, reducing urgency in making purchasing decisions. Open home attendance has been consistent, and vendors are adjusting their price expectations to align with current market conditions.

Lower Hutt Rental Market Trends

The rental market in Lower Hutt has experienced some shifts, largely due to an increase in housing supply and stabilising rent prices.

• Rental prices: Average rents have remained steady, with some areas seeing slight declines due to increased availability of rental properties.
• Investor behaviour: Many landlords are re-evaluating their holdings, with some selling off properties as yields tighten.
• Tenant demand: Demand remains strong for well-maintained properties in central locations, while newer developments are offering competitive rental rates, adding more choice for tenants.

With more properties available for rent, tenants have greater negotiating power, and landlords are needing to ensure their properties are well-maintained and competitively priced to secure long-term tenants.

Looking Ahead

With increasing sales activity, steady buyer demand, and a balanced market, Wellington and Lower Hutt are experiencing a period of relative stability. As interest rates ease and more properties become available, competition remains strong. The coming months will be key in determining whether investor sell-offs continue and how buyer sentiment evolves in response to shifting economic conditions.

If you're considering buying or selling, now is a great time to explore your options in this dynamic market.