New Zealand needs a larger population so the good news is that the year to May 2015 was a record for net migration.
While nearly half of the 58,000 are in New Zealand on Student Visas many of them will apply for residency visas. Asia accounts for nearly half of all migrants. Auckland is the centre point new immigrants.
A news item on interest.co.nz suggests net migration will peak at the current level. From the news item an ASB senior economist is quoted:
In a Quickview newsletter on the latest figures, ASB’s senior economist Chris Tennent-Brown said he expected the net migration gains to peak at around 58,000 people a year.
It’s hard to see these positive drivers changing in the near term, he said.
We expect that the population will continue to be boosted by net monthly migration inflows around current levels for at least the next six months, which would see annual migration inflows peak 58,000 in 2015.
The risk is that this level of inflow remains elevated for longer than we currently forecast. For the economy, those expected strong migration inflows are part of our forecast for robust levels of consumption and housing demand.
It’s hard to foresee any major change to housing demand in Auckland. Therefore property values should remain buoyant as supply falls further behind demand.
Property investors suggest the recent Auckland Investment Property LVR restriction will have very little to no impact on them.
Purchasing a property in Auckland for investment now requires a 30 percent deposit. However with ample equity growth in Auckland homes Property Investors don’t foresee any major headaches sourcing loans for new property purchases.
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