Residents of Wellington's Breaker Bay will be allowed to return home, but the coastline road will remain closed as workers clear up the debris from massive waves.
Up to 70 houses were told to evacuate last night after waves of up to 8m were expected to hammer the south coast.
Wellington City Civil Defence controller Derek Baxter says large waves are also still breaching the seawall in one section of Owhiro Bay Parade.
He says several large swells have crossed the road in the past hour and caused damage to at least one house.
Fire crews and contractors have been on hand to help pump seawater from one property.
For weather updates earlier today: