What Is Driving This Surge in Wellington?
Increased listings and falling rents stem from:
• A record number of rental properties on the market, offering tenants more choices • Reduced tenant demand, particularly among younger renters. • Property investors and developers in Wellington shifting to the rental market as sales slow
Oxygen Business Development Team Insight on Development Slowdown
Oxygen’s Business Development Team, working closely with developers in the Wellington region, report a sharp slowdown in new build activity:
• Year to December 2024, Wellington recorded just 1,833 new home consents, down 24 percent year on year • The March 2025 quarter saw just 177 residential consents, versus 500 in December 2022, the peak of the market • This collapse in new development supply mirrors a national dip and signals a tightening pipeline
What This Means in the Short Term
• Rents are softening, with more choice and less competition • Landlords are adjusting by offering incentives, more flexible leases, and pet friendly options
Oxygen’s Outlook Over 12–18 Months
• Oversupply will be absorbed as fewer new rentals enter the market • Even modest net migration will intensify demand, especially in Wellington, a primary relocation city • Expect vacancy rates to fall and rents to begin climbing again by late 2026
Why It Looks Positive for Landlords
• The slowdown in new builds creates a multi year supply shortage • Wellington’s historical role as a migration hub ensures ongoing demand • Landlords investing now can benefit from rising rents and higher occupancy in the longer term
