Summarised by Centrist
House prices in Wellington have fallen by nearly 30 percent since the market peak in January 2022, leaving recent buyers facing six-figure losses.
QV’s latest data shows Wellington City – West down 29.9 percent, from an average of $1.44m to $1.01m. Lower Hutt values have dropped almost $300,000, from $1.03m to $741,000. Across the capital, average prices are down 2.4 percent in the three months to August.
Nationally, Queenstown values rose 2.5 percent in the quarter, Hastings 1.7 percent, while Nelson dropped 3.2 percent.
Buyers who entered the market during the COVID-era boom are among the hardest hit. Dylan, who purchased a Porirua property in 2021 for $700,000, now expects to sell for little more than $400,000, wiping out his KiwiSaver savings. Chris and his partner bought a beachside home in 2022, only to see its value fall by more than $200,000, forcing them to extend their mortgage into their 80s after a job loss and rising interest rates.
Tommy’s Real Estate chief executive Ben Castle said the rapid rise and fall was “a perfect storm” driven by ultra-low interest rates, tight supply, and pandemic-driven demand. He said those selling after short ownership terms are most exposed. “If you bought in those big heights post-COVID and are having to sell now, that is a short window, and there will be a value decrease,” he said.
QV’s House Price Index recorded a 0.8 percent national fall in the three months to August. The downturn has been particularly severe in Wellington, where Castle said job losses have reduced the buyer pool and amplified the decline.
