Wellington's rental market, as of early 2023, presents a dynamic and somewhat contradictory picture. The region's rental market has been characterised by high demand and limited availability, which typically drives up rental prices. This demand is fueled by various factors, including the city's thriving economy, diverse culture, and desirable lifestyle, attracting a wide range of residents from students to families.
Despite this high demand, some interesting trends have emerged. According to recent data, Wellington's median weekly rent for urban properties remained stable at $590 over the past year, suggesting a period of stagnation in rental price increases.
Interestingly, rentals for homes and apartments in Wellington have seen a decrease, with home rentals dropping by 3% and apartment rentals by 2% year over year. Large properties in the Wellington region experienced a 4% decline in median weekly rent over 12 months.
However, the overall picture is more nuanced. In the broader context, Wellington's median weekly rent has increased by 33% over the past five years, outpacing the national average which saw a 28% increase in the same period.
This indicates a long-term upward trend in rental prices in Wellington, despite the recent stabilisation or minor decreases in certain property types.
The rental market is also influenced by the variety of properties available. The average weekly rent for a one-bedroom apartment in Wellington is around $450, while a two-bedroom apartment can range from $600 to $800 per week.
Rental prices vary significantly based on factors such as location, age, and condition of the property. For instance, central city suburbs like Te Aro, Mount Victoria, and Thorndon are among the most expensive areas, with average weekly rents for a two-bedroom apartment ranging from $600 to $900. In contrast, more affordable suburbs like Newtown, Miramar, and Tawa offer better value, with average rents around $450 to $600.
In summary, while there has been a recent stabilisation or slight decrease in some rental segments in Wellington, the overall trend over the past few years indicates a significant increase in rental prices. The variability in rental prices across different areas and types of properties in Wellington underscores the complexity of the rental market in the city.
If you are wondering if your home's rental price has gone down, we recommend that you get in touch with our property managers to conduct a free rental appraisal to find out home's rental value.
