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Operating costs

Wellington is the ideal place to expand your business thanks to our highly educated and skilled workforce, as well as a collaborative and well-connected business environment. We also benefit your business by being cost-effective location for your business activities with lower operating costs.

DNA office crop

Office costs

In the Wellington CBD, the average total occupancy cost is $345/per square metre, compared with a national average of $399/per square metre, and approximately 46% lower than Auckland's average of $553 per square metre (Colliers Workplace Survey 2014).

Some organisations need to be in the central city. However, for companies interested in regional locations for their business, there are opportunities for cost-effective options in the Hutt Valley, Kapiti Coast, Porirua and Wairarapa regions.

These locations offer potential cost savings in real estate, staff turnover rates and workforce stability.

Commercial office costs per square metre

 

A Grade

B Grade

C Grade

Gross face rents ($/m2 per annum)

425 – 460

225 – 290

155 - 180

Outgoings* ($/m2 per annum)

85 – 110

70 – 95

60 - 85 

Incentives (%)

0 – 3

0 – 10

0 – 15

* Including ground rent where appropriate
Source: Colliers International Research New Zealand CBD Office Report

National occupancy cost comparison

 

Wellington

Auckland

National

Total occupancy cost ($ per m2)

$345

$553

$399

Total occupancy cost ($ per workstation)

$5,649

$8,956

$6,550

Source: Colliers Workplace Survey 2014


Labour costs 

Salaries are generally 20-30 percent lower in New Zealand than in Australia and we have no Payroll Tax (around 5% on top of salaries in Australia). Although salaries may be slightly lower, the lower cost of living in New Zealand can allow for a high disposable income. The table below, gives you an indication of the difference in salaries from Wellington compared to Australia.

Information Technology

Role

Wellington*

Sydney in NZD

Melbourne in NZD

Systems Analyst

75 – 90

 75 – 110

 80 – 120

IT Manager

90 – 125

100 – 170

 100 – 170

Sales & marketing

Role

Wellington*

Sydney in NZD

Melbourne in NZD

Sales Coordinator

42 – 55

 45 – 50

 50 – 60

Marketing Manager

80 – 120

 110 – 150

 100 – 150

Finance & Accounting

Role

Wellington*

Sydney in NZD

Melbourne in NZD

Cost Accountant

60 – 70 

65 – 85

55 – 65

Financial Controller

120 – 160

140 – 170

130 – 200

Customer Support

Role

Wellington*

Sydney in NZD

Melbourne in NZD

Customer Service Representative

38 – 48 

45 – 60

50 – 60

Office Manager

50-60

60 – 90

70 – 90

*Base salaries only, exclude superannuation/bonuses/incentive schemes/stock options.
**Exchange rate calculated at 10 April 2015, NZD ’000

Source: Hudson Salary & Employment Insights New Zealand 2014 and Hudson Salary & Employment Insights Australia 2014


Wellington Offices DNA Design Agency Office 2 operating costs

Affordable utilities

Electricity and gas

There are 14 energy companies operating in Wellington, with 18 companies competing nationwide. Visit the following websites to compare pricing across providers:

For more information on electricity pricing, visit the Ministry of Business, Innovation & Employment to view electricity price monitoring.

Water

Although residential water use is unmetered, most commercial and industrial water use is charged and metered by Capacity Infrastructure Services.

Telecommunications

Telecommunication costs in Wellington are internationally competitive. Many service providers offer mobile, landline and broadband packages to further drive down costs. Heavy saturation fibre is available to all businesses in Wellington, and in many cases dual or triple fibre is also offered.

Diesel

New Zealand had the lowest diesel price in the OECD for 2013, coming in at US$101 per unit, compared to the OECD average of US$156 per unit (International Energy Agency's Energy Prices and Taxes 2014 Q3 edition).

Costs related to capital  

In New Zealand, the base lending rate (also known as the bank lending rate) is the average rate of interest charged on loans by commercial banks to new businesses. The bank lending rate for March 2015 was 10.4%

Contact us

The WREDA Business Growth and Innovation team are happy to discuss specific costs that are relevant to your business. While they're totally biased about Wellington, they are completely impartial about suppliers and commercial spaces. 

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