Opinion | Wellington’s Reset Moment: Building a More Resilient City

The recently announced reduction in public sector roles over the next few years will be felt across Wellington and the wider region. We are a city with strong links to central government and changes of this scale will have flow-on effects will have flow-on effects for households, businesses, and the property sector.

The public sector accounts for approximately 23% of employment in Wellington City, while the wider Wellington region represents around 43% of the country’s public workforce.  Central Government has long been a major part of the city’s economy, supporting not only government departments, but also the hospitality sector, retailers, consultants, professional services firms and the commercial property market.

Whilst it is easy to focus on the challenges the city faces, I believe we should be treating this as our reset moment — a chance to be more deliberate about what the city wants to become.

For too long, Wellington has perhaps been a little too comfortable with itself as being the capital city.  This will always be important and should remain a key part of the city’s identity, but if Wellington is only seen as a government city, we risk overlooking the many other strengths that can support its future.

Wellington can be much more than a capital city.  It can be a city where different sectors work alongside and complement each other, without placing too much reliance on any single part of the economy.  A city where young people want to come and study or work.  Where businesses are started, intellectual property is developed, investment is attracted, and ideas, products and services are exported to the rest of New Zealand and the world.

The bones are already here. Wellington has a unique geographic identity.  It’s a highly compact, walkable CBD that is surrounded by a stunning harbour and town belt that many cities around the world would love to have as a blueprint. It also has a proven ability to create successful businesses across a wide range of sectors.

Wellington already has a strong business story to tell. Technology and digital leaders such as Xero, Wētā FX, FNZ, Trade Me, Sharesies and Hnry sit alongside iconic brands such as Whittaker’s, Fix & Fogg and Resene. They are very different businesses, but together they show that Wellington can build companies with scale, strong brands and international relevance.

The same is true of the film and creative industries. As a UNESCO City of Film, Wellington has a level of international credibility that very few cities of our size can claim. We should be using that status to encourage more investment, more visitors, more events and more creative activity — not just treating it as a point of local pride.

The next opportunity we are facing is artificial intelligence. Cities around the world are moving quickly to adopt AI and use it to drive productivity, efficiency and growth. Wellington should be leading the pack. With its mix of government, universities, technology companies, creative industries and professional services, the city is well placed to lean into this rapidly changing environment.

This AI shift will also have a real impact on the property sector.  Demand for traditional office space is unlikely to look the same over the coming years.  Some older assets will need to be converted into apartments, hotels, student accommodation, flexible workspaces or other forms of mixed-use activity.

A more resilient city centre will need activity beyond the Monday-to-Friday office rhythm.  That means encouraging more people to live centrally, supporting students, visitors, and events, and creating more reasons for people to spend more time in the city.

This all matters because buildings and investment follow demand. If the city does not adapt, the commercial property market risks facing a long period of soft or falling demand, lower confidence and limited investment. This would not be a good outcome for property owners, tenants, lenders, council or the wider Wellington economy.

What we need now is coordinated leadership and practical decision-making.  Planning and consenting settings should make it easier and more commercially viable to convert and repurpose buildings.  We desperately need infrastructure investment that is not just about catching up, but supporting the city’s long-term sustainability, particularly around water and core services.  A safe, clean, and functional city centre will be important, as will a compelling story for investors, businesses and residents about where Wellington is heading.

These challenges cannot sit with council alone. It also cannot sit with central government or the private sector in isolation. Progress will require the public and private sectors to work together on decisions that support confidence and encourage investment and talent into the city.

There will be some hard calls along the way, but that may not be a bad thing. As the saying goes, you can’t beat Wellington on a good day. The challenge now is to work together to make sure the city has as many good days as it deserves.