Wellington has been in a state of change as of late. As we know upcoming tech companies like Xero and TradeMe have made Wellington their home and been feeding the technology scene.
However there are some bigger forces at play that are causing Wellingtonians to ask some bigger questions...
Firstly, the big Transmission Gully motorway is getting closer to completion and progressive businesses are seeing opportunities to go North so they are a step closer to serve the Auckland population while still being able to take care of business relationships in the Wellington CBD due to shorter commutes.
What this really means is that commute times from the Kapiti Coast could almost be cut in half when it’s fully completed.
At the same time, due to earthquake requirements from the recent shake ups, less housing and commercial real estate is available in the Wellington CBD; and an increase in population is making matters worse. House and commercial prices are on the rise and everyone’s having to ‘squash in’ a bit more – to the point that young families and upcoming businesses are considering moving north.
Actually, a number who see the trends have already started moving North.
On top of this, we’re seeing an increase in the ‘work from home’ option for office workers, and those that want the ‘Kapiti beach lifestyle’ while being able to hold their jobs in the Wellington CBD are catching on to a new lifestyle option.
As a flow on, property developers on the Kapiti coast in both the prime undeveloped housing and industrial zones are busy at work to accommodate and capitalise on the new demand. Right now there’s a few housing zones that are holding some big opportunities due to the expressway. Namely, Raumati, Paraparaumu and Waikanae for housing in the Kapiti area.
Traditionally Petone has been the hotbed for industrial property due to its close proximity to Wellington. However the new highway is adding new options. Otaki for example due to its newly developed industrial zone is now attracting a diverse range of tech and distribution companies with larger companies like Fletchers Construction and Transpower setting up an operation there.
Obviously this whole push North of Wellington means that both domestic and commercial property investors are starting to see the investment opportunities and a chance to 'get in' before the new expressway is fully built. Therefore for those Auckland companies that are thinking about a satellite location in Wellington, it’s all good news and options are vaster.
Not to mention there could be some good capital gains to be made in the next few years for those that snap up both lower cost housing and industrial land.
Obviously, it's hard to know exactly how much growth we can expect outside of the Wellington CBD. But it’s worth tuning in and watching it all unfold!