Wellington house prices: Tawa, Johnsonville RVs see greater jump than Oriental Bay

The coastal suburb of Oriental Bay is now worth $2m. Photo / Mark Mitchell

House values in Tawa and Johnsonville have seen a greater percentage increase in the past three years than the likes of $2m suburb Oriental Bay.

Wellington's rateable values (RVs) were released last week, updated for the first time since 2018.

They showed a jump in house values of 60 per cent and a doubling in the average land values across the city – with the average house value in Wellington now $1.435m.

But the figures show a more drastic increase in the areas once considered most affordable, such as the outer suburbs of Tawa and Johnsonville.

The median house value in Tawa North is now $1.02m, up nearly 73 per cent from $590,000 in 2018.

Tawa also saw one of the most drastic increases in land values, which have more than doubled across all parts of the suburb.

Tawa East had a 124.4 per cent increase in land value, with Tawa West (120.3 per cent) and Tawa Central (1197 per cent) not far behind.

Johnsonville Central has also seen a 70 per cent jump in RVs from $600,000 in 2018 to $1.02m this year.

In contrast, some of Wellington's most expensive suburbs have seen a lower percentage increase since 2018.

The coastal suburb of Oriental Bay has seen an increase of 34 per cent, with the average house increasing in value from $1.77m to $2.38m.

In Kelburn, the median house value has jumped by 58 per cent since 2018, from $1.03m to $1.63m.

Wellington City Councillor and Tawa resident Jill Day said she was concerned by the escalating RVs in her region, which showed the trend of Wellingtonians buying further out of the city.

"It's getting to the point where these areas aren't going to be affordable for people who we would hope could afford to live there," she said.

"I want to live in a city where we're diverse and where people from all different walks of life can find a place to live.

"This sort of thing is indicating that that's changing, and that's a problem."

Day said she was already starting to see the impact around Wellington's northern suburbs, and knew some people would be priced out of the region.

"It will favour people who are on high incomes, and that doesn't create a city where people will feel like they can stay to study."

"It has long-lasting and far-reaching impacts."

Released last week, the RVs provide the data that helps inform how councils set their rates. The 2021 RVs were taken on September 1 this year and will be posted out to individual property owners this week.