“Wellington should be a warning,” he said.<\/p>\n
\u201cProperty values have been smashed from their peak, businesses are dealing with a tougher CBD, and confidence has taken a beating,\u201d Panos said as he walked through a deserted car park in Wellington CBD.<\/p>\n
\u201cHigh interest rates, changing property policies and an economy heavily exposed to Government employment have all played their part. Walk these streets and you realise something: bad economic decisions eventually become visible. Australia, pay attention.\u201d<\/p>\n
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Tom Panos on the streets of Wellington CBD. Photo \/ Facebook<\/p>\n
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Wellington property values have dropped by 2.4% in the last three months. Prices are 27% below their peak. Photo \/ Getty Images<\/p>\n
Panos, who shot to fame as the auctioneer on The Block Australia, highlighted that Wellington property values were 30% below the peak, CBD retail vacancy was over 10% and office vacancies were over 12%. This was the highest in years, he said.<\/p>\n
\u201cYou can see it on the streets … this is what happens when confidence disappears.\u201d<\/p>\n
He blamed the previous Labour Government led by Jacinda Ardern for creating a \u201cCovid boom\u201d and the current Coalition Government led by Christopher Luxon for cutting thousands of public sector jobs.<\/p>\n
\u201cBusiness has stopped expanding, property buyers have stopped competing, and sellers suddenly discover the wealth effect \u2013 that they are significantly poorer, and it acts out in their mindset as well. <\/p>\n
Discover more:<\/p>\n
– Coach at centre of slap video quits social media, lists properties for sale<\/a><\/p>\n – Businesswoman who bought Mike Hosking’s home for over $9m now selling her coastal estate<\/a><\/p>\n – Who bought Southland\u2019s mystery mansion? Foreign buyer deal leaves locals guessing<\/a><\/p>\n \u201cAnd Australia, this is a warning. Don\u2019t look across the Tasman and think that this could never happen to us. Governments have to understand that property policy, tax, regulation, employment, business confidence don\u2019t operate in separate little boxes.\u201d<\/p>\n He urged the Australian Government to visit New Zealand\u2019s capital and learn from its mistakes.<\/p>\n \u201cSo, I\u2019m walking around Wellington, I\u2019m not celebrating what\u2019s here. I\u2019m looking at it and saying, Australia, study this place carefully because sometimes, man, the best way to understand what not to do is to look at somewhere that\u2019s already lived through it. Guys, Australia ALP, come to Wellington and see what we\u2019re heading for.\u201d<\/p>\n Sydney\u2019s median house price has fallen by A$69,000 since the beginning of the year. Photo \/ Getty Images<\/p>\n Speaking to OneRoof today, Panos said he “adored Wellington”, but that it “should be doing much better”.<\/p>\n “It’s a walking city, everything is close by. It’s a beautiful city, aesthetically,” he said.<\/p>\n “The one thing that’s disappointed me is seeing the high vacancy rates of shops and office space.”<\/p>\n “Wellington should be a lot better than what it is. I really look forward to seeing it being a hustling, bustling city with a lower vacancy rate and confidence back there, and I’m sure that will happen in the years to come.” <\/p>\n Wellington property values are under pressure. The latest OneRoof house price figures show the region\u2019s average property value fell by 2.4% in the last three months, to $823,000.<\/p>\n Homeowners who bought at Wellington\u2019s market peak have also seen the value of their biggest asset shrink by more than $300,000. <\/p>\n Property values in the capital itself have shrunk by 32% ($428,000) over the same period, leaving many in negative equity and trapped.<\/p>\n Property values in Australia have also come under pressure, with many in the real estate industry blaming the Australian Government\u2019s decision to end negative gearing for investors<\/a> and to introduce a new inflation-adjusted capital gains tax.<\/p>\n Australia\u2019s heated housing market, where investors have accounted for 40% of new home loans, has rapidly cooled, with auction clearance rates plummeting and median sale prices<\/a> in the country\u2019s state capital cities, including Sydney and Melbourne, recording sharp declines.<\/p>\n![\"Opes](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/08\/af060c3b78da6d433cd368c9654a1cfd.jpg\")
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