Anyone know why Wellington has stalled?

[Phant]

Just wondering if anyone has any information on why Wellington property is lagging so far behind the rest of the country?

Wellington to me seems like the ideal place for capital growth; land is only in one direction, big companies have a base of operations there and forecasts show that it is still increasing in population (obviously not at Auckland levels, but still growing)

What am I missing?

[Bob Kane]

There's no growth in Wellington - no new businesses and the population isn't growing.
No new demand for housing so no house price increases.

[flyernzl]

Big business has moved out of Wellington and gone to Auckland.
We don't have a Labour/leftish government. so lack growth in numbers of the public servants.

Possible ploy - buy up large in Wellington and then vote Labour.

[partya]

New valuations just out have shown some increases, though one of my apartments has shown a decrease. This perhaps does not bode well for some of the new builds happening in the CBD at the moment.....

[PTILoveYou]

Also the earth quake risks and compliance cost in the commercial sector might be driving away big businesses and people in general too?

And the unpleasant wind and lack of international airport?

[Nice]

You guys keep knocking it, I'll keep investing ! The 10% increase I got last week across my portfolio is typical of well selected property; it ain't Auckland, but it seems to be sustainable. Has been for me over the past 15 years anyway.

[Eugene]

Christchurch earthquake, John Key's comment, have damaged confidence

However I am not sure how much Wellington has stalled.

Greater Wellington is a large area, the city itself could be doing well but the Wellington stats not show it
Some suburbs have done quite well
The inner city has many apartments, some new, which brings the average down.

Commercial is doing well.

With 1.5 million sq metres of office space, Wellington's CBD is bigger than Auckland's 1.3 million sq metres

Upgrades to 100% of NBS is happening, and note that 100% in Wellington could equal 120 or 130% elsewhere

Insurance premiums have reduced by 20% to 30% recognising that Wellington is far better prepared to cope with a major earthquake than any other major NZ city

The Lambton Quay golden mile has more foot traffic than anywhere else in NZ and is seeing refurbishments including 1000 sq metres at Cable Car lane

David Jones is arriving in Lambton Quay, and announcements from Topshop and Zara are awaited

Developments include:

The Terrace - $72 million refurbishment and expansion of Unisys House
Molesworth St - $30 million to double size and improve base isolation system to bring Ministry of Health building to 150% of NBS
Victoria University Pipitea/CBD campus - new six floor annex to existing building, TeAro campus refurbishment
Cuba Quarter another 1000 sq metres of retail space, Weltec new 9000 sq metres campus
Waterfront 10,000 sq metres new Willis and Bond office and retail
Customhouse Quay BP house to make way for $80 million building
Etc - new apartment hotel Boulcott St, new Xero office development, etc etc

The runway extension plans are gaining momentum
Transmission Gully is going ahead

Wellington CBD has far more flat land than Auckland CBD

As for the reputation for, I don't know, it not being a nice place, have the naysayers ever actually been there?
Or did they have a bad experience there? Did they visit in the middle of a howling southerly straight off the Antarctic?
What is there not to like?
I live here and I am still staggered by its beauty and all the fun things to do
Here's one nice little movie of Wellington:
https://www.youtube.com/watch?v=ymBck-Ul-zE

[Eugene]

There's no growth in Wellington - no new businesses and the population isn't growing.
No new demand for housing so no house price increases.

The population is growing.
WCC is implementing areas for medium density housing in several suburbs across the city.
Landowners are being consulted and rezoning areas to commercial is being investigated to make nice 'town' centres
These initiatives help keep infrastructure costs low, reduce sprawl, and enable investment in public transport.

There are plenty of new businesses in the technology sector,
and businesses relocating to Wellington.

Rumours of Wellington's death are exaggerated

[Bob Kane]

House prices have gone sideways so it's a bit hard to argue the population is growing.
Left wing councils don't help growth either.

[Rosco]

If Labour or the Greens get in, then the government spending will jump up.

Meaning that Wellington will most likely take off, due to more jobs, higher wages for government workers and more money being thrown around.

Ross