PHOTO: Capital Crash? Wellington Property Prices Plunge Again — Now 26% Below Their Peak. FILE
🚨 Another Quarter, Another Drop — Is Wellington in Freefall?
In a trend that’s starting to look less like a correction and more like a housing crash, Wellington’s property values have fallen another 2.3% in Q2 — dragging the city’s average value down a staggering 26.1% from its peak in late 2021.
Yes, you read that right. Over a quarter of Wellington’s house value has evaporated in just three and a half years.
From Karori to Kilbirnie, Newtown to Ngaio — nowhere is immune.
🏚️ What Does This Mean for Homeowners?
For thousands of Wellingtonians who bought in the 2020–2021 frenzy, it’s grim news:
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📉 Equity wiped out
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💸 Refinance struggles as home values drop below mortgage balances
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🛑 First-home buyers facing instant negative equity
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🏦 Investors underwater and bailing fast
And with rates still high and the job market softening, there’s no obvious floor yet.
🏙️ Why Wellington Is Getting Hit So Hard
Wellington’s market boom was one of the steepest during the pandemic — but it’s now proving to be one of the most fragile. The reasons?
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🧱 High-density building approval surge = oversupply
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🏦 Investor exit after tax changes and CCCFA tightening
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💼 CBD woes as remote work devastates commercial zones
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🌧️ Constant weather and infrastructure problems turning buyers off
Combine that with rising insurance premiums and deteriorating confidence, and the capital’s once-hot housing market is now New Zealand’s biggest red flag.
🔮 What Comes Next?
Experts warn the pain might not be over.
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Interest rate cuts are being delayed, keeping pressure on borrowing
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Waka Kotahi’s roading delays and council dysfunction add more uncertainty
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Rents are rising — but not fast enough to offset capital losses
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Job cuts in public service continue to rattle confidence
Some suburbs have now returned to pre-2019 prices, and buyer sentiment is near record lows.
🧨 Capital in Crisis?
The data is in. Wellington is no longer a “wait and see” story — it’s become a national warning about what happens when inflated markets, shaky infrastructure, and political apathy collide.
The capital city of New Zealand has become the capital of housing pain.