The laundry can be found in a green garden shed placed beside it.
The Trade Me ad promoted the one-bedroom home as being suitable for one person and in a good location for Onslow College and the Johnsonville shopping mall.
The container - which has windows and has been lined with wood panels - comes fully furnished and includes a microwave, electric hot plate, bed, washing machine, dishwasher, fridge-freezer and cutlery and plates, according to the ad.
But now it has been revealed the dwelling as it's set up hasn't been fully approved and doesn't have a code of compliance certificate.
"The work on this container has been consented and inspected, but it does not have a code of compliance certificate due to outstanding final documentation requirements," Wellington City Council spokesman Richard MacLean said.
The consent was certified under the Ministry for Business Innovation and Employment national multi-use approval scheme.
"This means that if the plans match what has been nationally approved by MBIE, then the council must accept them," MacLean said.
"However, the garden shed used as a laundry and the lean-to structure seen in the photo are not on the approved plans – so we will be sending staff to have a look at that issue."
Trade Me's Trust and Safety team removed the listing on Monday night, just hours after it was put up.
Policy and compliance manager James Ryan said the team monitored the site constantly for misleading on non-compliant listings.
"All Trade Me members must comply with New Zealand law and that includes the Residential Tenancies Act, House Improvement Regulations and Healthy Homes Guarantee Act," he said.
"Any listings that appear to breach these acts are illegal and therefore cannot be listed onsite."
Pictures of the listing spread quickly on social media this week, with some commenters noting the $390 per week price tag was more than they paid on their mortgage for a standalone house.
Other rental listings online show studio apartments in the central city available for similar or lower prices.