Investment, Landlords, Latest, Newsroom, Rental Updates

The Reserve Bank’s recent decision to cut the Official Cash Rate by 50 basis points to 2.50% has added a welcome boost of confidence to the housing market. While most banks haven’t yet adjusted their lending rates, this move signals a turning point — and we expect to see lower mortgage rates over the coming weeks.

For the rental market, this shift comes at a time when tenants are increasingly active and property movement is on the rise. Lower borrowing costs will help existing landlords manage repayments more comfortably while encouraging new investment in residential property over time. Wellington remains a tenant-favoured market, but strong results are still being achieved for well-presented, competitively priced homes.

Rental supply remains elevated across much of the Wellington region, giving tenants greater choice and keeping landlords focused on presentation and price. The median rent sits in the mid-$500s per week, while Tommy’s-managed properties continue to achieve an average in the low $700s, a testament to quality management and presentation standards.

We’re seeing more tenant movement than in previous months — many long-term renters are seeking a change, while first-time tenants are moving out of home as affordability improves. The student market is also picking up earlier than usual, with students already reaching out to secure accommodation for 2026. If your tenancy ends early next year, now is the time to check in with your tenants, confirm their plans, and start advertising early if needed.

Demand remains especially strong for three-bedroom homes in Paraparaumu, where listings are leasing within days. Meanwhile, Wellington City is beginning to show signs of renewed demand after a quieter winter, suggesting that the market may be on the verge of shifting back toward balance.

Tenants are more discerning than ever. Clean, well-presented homes — particularly those that feel fresh and well cared for — are leasing quickly. A professional clean between tenancies continues to make a noticeable impact, helping attract quality tenants and setting the tone for a positive start to the tenancy. Homes that combine good presentation with realistic pricing are seeing strong results across all price ranges.

Our real estate team is also reporting a clear lift in buyer activity. Despite the typical Wellington spring weather, open homes have been busy, enquiry levels are strong, and offers are flowing in. The team notes that as the OCR tracks downward, interest rates are expected to ease further — a positive sign for both buyers and homeowners with mortgages.

The message from the sales side is clear: the market is bouncing back, and the run-up to Christmas remains one of the best times to sell. If you’re considering making a move or reviewing your investment portfolio, now’s an excellent time to speak with our sales team for an up-to-date market appraisal.

Heading into the final months of 2025, Wellington’s property market feels energised again. The combination of improved affordability, greater tenant mobility, and a more confident buying environment is creating steady momentum across both the rental and sales sectors.

For landlords, the key remains presentation, communication, and timing. Those who stay proactive — keeping properties fresh, pricing realistically, and engaging early with tenants — continue to achieve excellent results.

If you have a tenancy ending soon or are considering renting or selling, our team can help you assess your options. Contact your Tommy’s Property Manager or Sales Consultant today to discuss your next move.