What $1m buys you in Wellington

Wellington suburbs have crept up to the $1 million sale mark but it may surprise you just what that cash will buy in the capital.

Broadmeadows, Khandallah, Northland, Hataitai, Thorndon, Te Aro and Mt Victoria joined the million-dollar club, after Wellington house values rocketed up by nearly 50 per cent over the past three years.

Lowe & Co founding partner Craig Lowe said the changes to Broadmeadows house prices were a bit of a surprise but otherwise statistics, released yesterday, were consistent with the experiences of real estate agents.

He estimated Wellington would see the upward trend continue in the short term due to lack of supply but it would ‘‘not last forever’’.

‘‘We have had three years of phenomenal growth in Wellington after seven to eight years of relatively flat, to no, growth.’’

Population growth in the capital – a city surrounded by water on three sides – has forced expansion into the northern corridor and steadied market prices within the city centre, Lowe said.

Agents had recorded double the number of open home inquiries in areas like Newlands, Paparangi and Grenada North.

‘‘I think that’s part of the reason we’re seeing bigger, stronger gains in those suburbs where they have traditionally been cheaper.’’

However, buyers were still paying more to be in the city.

Lowe & Co recently sold a 5-year-old, three bedroom, 120-square-metre property, complete with a carport for $720,000 in Tawa. That compared to a three-bedroom home with a backyard in Lyall Bay which sold for just over $1m.

Bayley’s Realty Group licensee Derek Tyler said Newlands had seen extensive growth with asking prices frequently at the $1m mark. Johnsonville had also crept up with average sale prices at $700,000.

A search on Homes.co.nz showed that a three-bedroom home with three parking spaces and no views in Te Aro sold for $1,104,000 in July. In the same month a two-bedroom Oriental Bay home, with one park and water views sold for $1,070,000.

In September, a Broadmeadows home with water views sold for $800,000, while a 1920s home in Seatoun with no view sold for $1,100,000 in June. They both had four bedrooms, two car spaces and two bathrooms.

Tawa, Newlands, Paparangi and Woodridge – previously considered affordable suburbs – saw a more than 50 per cent increase, with average house values that exceeded $600,000 over three years.

The biggest growth was recorded in the suburbs of Berhampore, Mt Cook and Newtown, where average house values jumped 55.8 per cent, to $860,000.