- Two late 1800s cottages in Wellington are for sale under $1 million, offering stylish entry.
- The Mount Victoria and Thorndon homes have price indications below their rateable values.
- Wellington house prices fell 30% in three years, with market values differing from rateable values.
Two cottages from the late 1800s are giving buyers the chance to break into Wellington's housing market in style for under $1 million.
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One cottage has an RV of over $1m but is asking for enquiries over $875,000, while the other has an RV of $790,000 with offers invited of upwards of $695,000.
Both are in sought-after locations: one is a three-bedroom home in Mount Victoria, the other is a “rare” one-bedroom home in Thorndon.
While each property has a price indication well under RV, Lowe & Co managing director Craig Lowe says rateable values don’t necessarily reflect market values.
19 Moir Street offers buyers the chance to get a home in a popular suburb for less than $1m. Photo / Supplied
Also up for grabs at an affordable price is a one-bedroom cottage at 10 Saint Mary Street, in Thorndon. Photo / Supplied
Wellington house prices took a big tumble following the post-Covid boom, with Lowe noting that property values in the city fell by around 30% in the last three years.
People might find that hard to comprehend, but that’s a “huge” amount, he told OneRoof, arguing that to get back to peak values, sellers would need returns of over 50%. “It's an enormous change in pricing that has happened in the last three years," he said.
“If you come from Auckland, where some suburbs have an average sale price of $2m, well, these things are going to look cheap, but the reality is [Wellington] is still only back to pricing from around 2019 and 2020. These prices were normal. We're just back to where we were then, and no one was complaining at that point.”
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Psychology meant people were averse to a feeling of loss, he said. “The only difference is people had a big spike in value, and that got wiped out," he said.
“It's a bit different if someone bought in 2021 because then that really hurts because you can have all your equity wiped out if you bought right at the peak, but if you've owned it for six or seven or eight years, it should really be irrelevant to your decision making.”
Market value was determined by what people were prepared to pay for a property, and rateable values could be out in either direction, Lowe said.
In the capital city, RV had been reset downwards in 2024 after previously being set in 2021 at the very peak of the market. “The rateable values dropped a lot to reflect the change in the market so on average, the gap between sale price and market value would have narrowed when that drop happened, but the point is there is no connection," he said.
“In any market, you can sell a property for more or less than the ratable value. Averages don't tell you anything about an individual sale.”
The Wellington market had improved since 2023, when sales were at their lowest point post-Covid, but while activity had risen, it was still 25% below the long-term average in terms of the number of houses sold in a year, Lowe said.
That meant there was a way to go before activity returned to normal, with prices going sideways at best or nudging down slightly.
Having said that, the situation had stabilised a lot since the plunges of 2022 and 2023.
Wellington, hit hard with job losses after the Coalition Government came to power, had not yet recovered, meaning there had not yet been a recovery in sentiment, he said.
Regardless of where people sat on politics, Lowe said Wellington did better under an expansionary government rather than a tightening government. Wellington’s property market would be helped by variables such as an improved economy, job security and borrowing cost.
House prices in Wellington have fallen by 30% since market peak. Photo / Getty Images
“All of those things need to kind of turn around, and you get better positivity, and then suddenly the sentiment catches on.”
Lowe is the listing agent for the one-bedroom cottage at 10 Saint Mary Street, in Thorndon, along with colleague Samantha Hunt.
He said the “chocolate box” property dates from the late 1800s, and was perfect for a couple or a single person who wanted to be close to the city at an affordable price point. “Obviously, Saint Mary in Thorndon is a perfect location for maybe somebody who works in Government or in the CBD. You can walk to town. A wonderful spot,” he said.
It was a standalone home someone could get for a fraction of the cost of typical Thorndon villas, he added. "How many first home buyers get to live in Thorndon as their first home? It’s pretty rare - it's a huge opportunity.”
The Mount Victoria home, at 19 Moir Street, is being sold by James Lowe (no relation) and Anji Foster, who are marketing it as a picture-perfect property: “Tucked away on one of Mount Victoria’s quietest and prettiest streets, this enchanting late-1800s cottage is the very definition of charm," their listing on OneRoof says.
“Set within the Moir Street Heritage Area, this is one of Mount Victoria’s most character-rich enclaves. Dating back to the 1870s, the area is known for its compact cottages, petite sites and narrow laneways - all contributing to the timeless, village-like feel that buyers consistently fall in love with.”`
An architecturally-designed home at 6 Stormanstown Way, in Seatoun, is for sale, deadline closing February 4. Photo / Supplied
The house, a short stroll to the city and waterfront, had been cherished by the current owner for over 30 years, the agents added.
A more modern architecturally-designed home sits at the other end of the price scale in Seatoun, one of Wellington’s most prestigious suburbs.
The award-winning house, which has an RV of $2.51m and is listed with Lowe & Co agents Annie Newell and Nikki Baddeley, was designed by Tim Nees.
The listing says the view from the four-bedroom, two-bathroom home stretches from Wellington Harbour to Cook Strait and the Kaikoura Ranges.
“Set in a sought-after Seatoun heights location, this is a home where thoughtful design and effortless family living come together beautifully.”
12 Tensing Place, in Khandallah, has a 1960s vibe and stunning views. Photo / Supplied
Also at the upper end of the market is a five-bedroom, three-bathroom home in Khandallah, which has an RV of $1.57m and is being marketed by Lowe and Co agents Murray Potts and Sam Rathod.
Homes of this scale are few and far between, “and this one really delivers", the agents write in their listing.
“Set in a quiet cul-de-sac in Khandallah, 12 Tensing Place is a proper family home - over 400sqm of space, a flexible layout that actually works, and that unmistakable 1960s vibe that buyers love but rarely find at this size.”
The property had a flexible configuration and was big without being overwhelming, “practical without being boring, and it's tucked into a private, bush-clad setting with outlooks toward Wellington Harbour that remind you exactly why Khandallah is so tightly held.”
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