What’s Driving Property Values on the Kapiti Coast in 2025?

Nestled just north of Wellington, the Kapiti Coast has long been a favourite for those seeking a lifestyle that blends beach access, small-town charm, and city connectivity. In 2025, this popular stretch is experiencing a fresh wave of interest – and with it, renewed attention on what’s driving local property values. 

Whether you’re a homeowner considering your equity position or a buyer weighing your next move, understanding what’s influencing value across Kapiti’s key suburbs can help you make more informed, confident decisions. 

1. Lifestyle Remains a Major Drawcard 

From Paekākāriki to Ōtaki, the appeal of the Kapiti Coast as a lifestyle destination continues to attract a wide range of buyers. With expansive beaches, vibrant weekend markets, and access to regional parks, the Coast offers a more relaxed pace of life without sacrificing amenity. 

Many buyers are relocating from Wellington and further afield, with remote and hybrid working now well established. This demand has contributed to sustained price growth, particularly in towns like Waikanae and Raumati South, where family homes on larger sections remain in high demand. 

2. Infrastructure is Reshaping the Market 

One of the biggest influences on local property values is the completion of the Kapiti Expressway. The four-lane road has dramatically improved travel times between Kapiti and Wellington, making daily commuting a more viable option. 

The expressway has had a ripple effect:

• Increased demand in Paraparaumu, now a key transport hub with rail and road access.

• Rising interest in Ōtaki, previously seen as a "fringe" town but now within easier reach.

• New development zones have emerged around interchange areas, offering scope for growth and intensification. 

These changes are shifting perceptions and unlocking new pockets of value across the region. 

3. Recent Sales Reflect Resilience 

Despite a nationwide property market correction post-2021, Kapiti has proven relatively resilient. Median sale prices in Paraparaumu and Waikanae have held firm, supported by strong local demand and limited supply. 

According to CoreLogic data:

• Kapiti Coast property values were up approximately 3% in the year to April 2025.

• Waikanae Beach, Raumati South and Paraparaumu Beach continue to outperform their inland counterparts.

• Sales activity remains healthy, especially in the $700k to $1.2m range, with coastal homes and modern builds attracting strong competition. 

4. Demographic Shifts Are Influencing Demand 

The Kapiti Coast has one of the highest proportions of retirees in New Zealand. However, the region is becoming increasingly diverse:

• Young families are being priced out of Wellington and seeking more space.

• Remote workers value the blend of connectivity and natural environment.

• First-home buyers are targeting newer developments in Paraparaumu and Ōtaki.

This mix of buyers is supporting a healthy market, with demand for everything from compact townhouses to lifestyle blocks. 

5. Development and Intensification Are Gaining Momentum 

The Kapiti Coast District Council has released a series of growth strategies to manage population increases and housing demand. Key initiatives include:

• Enabling medium-density housing near town centres.

• Rezoning for future residential development.

• Investment in stormwater and transport infrastructure to support infill and subdivision. 

This policy environment provides certainty for developers and buyers, while also ensuring that growth is aligned with environmental and community goals. 

 6. Future-Focused Buyers Are Factoring in Climate Resilience 

As a coastal district, Kapiti is not immune to the risks of sea-level rise and erosion. While much of the coast remains safe and insurable, there is growing awareness among buyers of long-term climate risk. 

Valuers are seeing more due diligence enquiries related to:

• Hazard zones and council LIM reports.

• Insurance availability and premiums.

• Resilience features like elevated floor levels and setback positions.

Homes that combine good location with climate-conscious design are increasingly sought after, particularly among buyers looking to futureproof their investments. 

In Summary: Kapiti Coast in 2025 

The Kapiti Coast remains one of New Zealand’s most attractive regional property markets – and for good reason. Lifestyle, improved infrastructure, demographic change and a future-focused planning framework are all supporting value growth. 

While every property is unique, these trends offer insight into what’s shaping values across the district today. Whether you’re buying, selling, or simply planning ahead, a registered valuation can help you better understand your position in the market. 

Need a local expert? Our team provides independent, evidence-based valuations across the Kapiti Coast. Reach out today to book your valuation or talk through your property plans.