The New Zealand Association for Migration and Investment (NZAMI) claims that the Reserve Bank of NZ is wrong to claim that immigration is responsible for rising house prices.
The NZAMI, New Zealand’s leading professional association for immigration specialists, says that the Reserve Bank statement regarding immigration having a big impact on house prices appears to lack an understanding that this is only one factor when looking at the total situation.
The association’s chair, June Ranson, says Auckland Council has restricted housing developments for a number of years and it is only because the Government has drawn serious attention to this, that things are starting to change.
“The number of building consents is still far too short of what is required,” she says. She also says that speculative Kiwi property buyers are also an issue.
“The government should encourage the Inland Revenue to ensure that any tax liability is being investigated. There are a lot of people buying a house now for selling next year for the profit gain.”
In terms of immigration, Ranson notes that the recent record net migration figures can be misleading.
“There has not been an increase in migrants, although there has been a net migration gain and this is in relation to a cycle aspect rather than a continued issue,” she explains.
“New Zealanders are a very transient migrant population with approximately 20 per cent of New Zealanders living offshore. The issue that is different now is that New Zealanders are not leaving.”
Ranson believes that critics of the immigration system fail to understand the makeup of the migrants coming into this country. She says education institutions are actively seeking international students, while skilled migrants along with entrepreneurs and investors are also targeted.
“This [residency] programme is split between 30,000 skilled/business migrants (which we need), 11,000 partners of New Zealanders, 5,000 family reunification migrants and 4,000 humanitarian migrants, which includes refugees,” she adds.
Article published 13th November 2014