by Nick Gentle on
Article appears under:
Wellington,
Local Markets
For the past few years, Wellington’s property market has been on a bit of a rollercoaster. Between compliance fatigue, rising insurance and rates, and cautious investors, activity slowed, and the market lost its shine. But if you’re looking for opportunity, now is exactly the time to be paying attention
Students play a huge role in Wellington’s rental market, and Victoria University of Wellington was hard-hit by a drop in school-leaver numbers post-COVID. However, that trend has turned; the University had over 20,900 students in 2024, with the halls of residence fully subscribed once again for 2025.
During the post-COVID dip in numbers, halls of residence started accepting second-year students, which made it tough on private landlords. That is no longer the case with students being asked to exit the halls after their final exams to make space for next year's entrants. Those same students have been busy in October-November finding their accommodation for 2026, with more busy letting expected in January next year.
“In the past, if your property was near the university or in a good transport corridor, you were almost guaranteed a steady stream of tenants,” says Peter. “2024-2025 was a tough adjustment for many owners; a drop in student numbers hit at the same time as employment in Wellington declined, and new housing supply came online. It is great to see that trend reversing, with more demand and positivity back in the rental market."
“The student market is often misunderstood,” says Peter. “It’s not just about international students — local school leavers are a huge driver of rental demand. Families want their kids close to campus, so they need housing in good, safe areas.”
Projections are for record highs in student numbers as we approach 2030. As we head out of a tough period, many owners, particularly those going into retirement, are ready to sell. There is a great opportunity to "buy the dip", so to speak.
Today's students are better educated about housing and expect more from their flats than their parents might have; kids these days want proximity to campus, public transport, shops, and cafes. And they won’t compromise on living conditions: presentation matters, especially as we work our way out of a down-market.
“We’ve seen properties sit empty for months simply because the photos didn’t show what the property truly offered,” Peter says. “Conversely, a clean, modern, well-furnished home can be rented in days.”
Investors need to focus on properties that are not only strategically located but can offer quality living. Even small improvements — like fresh paint, modern kitchen upgrades, or additional bathrooms — can make a huge difference at any time, but especially in this market. That's where iFindProperty can help, our local knowledge and connections are the difference makers for out-of-town investors.
In the March 2025 quarter, only 177 new residential building consents were issued, compared with around 500 in late 2022.
“New supply is limited, so properties that are well-located and well-presented will become more valuable,” Peter explains. “That’s exactly the kind of environment investors want to enter — low competition, high long-term upside.”
Buying in a subdubed market is not just about capital gains; it’s also about consistent rental income and achieving a strong yield as rents lift. The city’s home-and-income properties and multi-bedroom rentals have traditionally been popular from students forming shared flats coming out of the halls.
I own in Wellington, and once a group moves in, you often don't have to advertise for several years, with the odd member moving on, while the core of the flat group stays intact. The dynamic can shift from second-year "kids", to young professionals, all in the same group.
“We’ve seen six, seven, and even eight-bedroom houses in Wellington filling a lot more quickly this year,” Peter notes. “Make sure your property is presented as best it can, and your price is correct for the area, and you will do well as the number of young people coming to Wellington continues to lift.”
Right now, investors can find opportunities in properties that are cashflow positive or neutral, with strong long-term potential, in some blue-chip suburbs where, in the past, you would have not achieved a good rental yield at all.
“We’re seeing home-and-income properties and multi-bedroom student rentals come back into favour,” Peter adds. “It’s a great time to get in, before supply tightens and prices recover.”
Whether you are buying a flat for your child to go to University, with an eye to long-term wealth creation thereafter, or simply looking for a profitable investment strategy, we believe that Wellington today offers a great opportunity to buy at downturn prices going into a recovery market, at low interest rates.
Get in touch with Peter Ambrose for a no-obligation discovery call to chat about the market and learn about how our buyers' agency service will help you invest successfully in our capital city.
Nick Gentle
Business Owner & Operations Manager
nick@ifindproperty.co.nz
027 358 3855
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