PHOTO: From drained KiwiSavers to mortgages that will last into their 80s, Kiwis who bought at the peak are now reckoning with the crash. FILE
💥 Some Wellington homeowners are facing financial heartbreak – with property values plummeting by up to 30% since January 2022, leaving many hundreds of thousands out of pocket.
💔 The $300k Loss That Forced a Tough Decision
Wellingtonian Dylan and his friend bought a Porirua “doer-upper” in 2021 for just over $700,000.
Now? They’ll be lucky to get $400,000 for it.
👉 KiwiSaver accounts drained.
👉 Renovation dreams abandoned.
👉 Stress amplified by a baby on the way.
Dylan summed it up simply:
“We just need to stop the bleeding.”
🏖️ From Dream Beach Home to Mortgage in Their 80s
Chris and his partner thought they’d finally scored their forever home by the beach in 2022. But when he lost his high-paying job, the dream unraveled.
📉 Their home dropped $200k in value.
💸 Retirement savings were wiped out.
📆 Their mortgage has been stretched out until they’re in their 80s.
Chris admitted it’s been a brutal ride:
“Lots of sleepless nights… we found ourselves in freefall.”
🏠 Buyers in a Frenzy – Real Estate CEO Explains
Ben Castle, CEO of Tommy’s Real Estate, says the early Covid housing frenzy was a “perfect storm”:
✅ Cheap money
✅ Low supply
✅ High demand
But now, Wellington’s market is feeling the steepest sting.
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Wellington City (West) dropped 29.9% from $1.44m to $1.01m.
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Lower Hutt fell nearly $300k from $1.03m to $741k.
Castle notes:
“If you bought at the big heights post-Covid and are selling now – there will be a value decrease.”
👶 Dreams Delayed, Families Impacted
For Tim, who bought in Lower Hutt, the $200k drop doesn’t matter – he’s staying put long-term.
But for Tori, it’s heartbreaking.
She and her husband bought a townhouse hoping to upsize soon. Instead, falling values mean:
🚫 No chance of upgrading to a family home.
🚫 Plans for a second baby on hold.
Tori says:
“We mourn what could have been – a yard, space for our kids. But it’s just not the reality.”
📊 The Big Picture – NZ Housing Pain
QV data shows:
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📈 Queenstown +2.5%
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📈 Hastings +1.7%
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📉 Nelson -3.2%
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📉 Wellington -2.4%
Wellington remains the hardest hit, amplified by job losses shrinking the pool of buyers.