Gateway to returns

It’s known as the gateway to the great outdoors, thanks to the fact that it is home to 70% of the Wellington region’s parks and reserves. But while Upper Hutt may be well known for its stunning natural attractions, its investment potential is less well known.

Located about 30km north-east of Wellington City, Upper Hutt was, traditionally, a working class area with an employment base in manufacturing. Since the big manufacturers upped and left, the NZ Defence Force and the Department of Corrections have been the largest employers in the region, at Trentham Army Base and Rimutaka Prison respectively.

Odds are that it’s this blue collar brand which has meant that, in the past, Upper Hutt has not featured on the property radar for many. These days though, it’s a city that is benefiting from the notorious “halo” effect. That’s because as both prices and rents in Wellington’s housing market have skyrocketed, eyes have turned to more affordable areas, like Upper Hutt.

And it turns out Upper Hutt has got a lot going for it for investors. There’s relatively affordable prices that are still growing, a strong rental market, decent returns and it’s an easy commute to Wellington and the Wairarapa.