Migrants looking for property in Auckland, New Zealand could be ‘the major swing factor’ in its rising housing market, says the city’s Chief Economist
Net migration to New Zealand’s largest city, Auckland, in the year to February 2014 is at a 10-year high and “could prove to be the major swing factor for housing activity in 2014″, says its Chief Economist.
In the Auckland Economic Quarterly, Geoff Cooper says, “There were 9,785 additional net migrants in the year to February 2014 compared to the previous 12 months, which equates to around 3,000 additional households (based on average household size from the 2013 census) or half of the 6,361 [new housing] consents issued over the same time period.
“Housing activity has continued to gain momentum, with volumes of work 17.9% higher year-on-year in the December quarter of 2013.”
In pure numbers terms, for a city with a population of some 1.4million, an additional 10,000 people in a year (an extra 0.7%) hardly seems significant, but immigration is a hit topic in New Zealand, where this week there were calls to relax the requirement of investor-visa applicants to speak English. Currently, if you invest NZ$10million plus, you can claim New Zealand residency without any …read more