New Zealand net immigration figures still rising

August’s figures for net migration to the country have been rising each month during 2013, with fewer New Zealanders leaving for Australia and increased numbers of migrant arrivals from overseas.

The attraction of Australia as regards job prospects and higher salaries which has led to exceptionally high migration across the strait is now declining as more NZ nationals see better prospects at home. Recently released figures from Statistics New Zealand have confirmed the trend, showing that emigration to Australia has declined month on month this year.

The push for skilled immigrant workers to help in the rebuild of Christchurch has resulted in a new migration gain for the city of 3,600 workers from overseas, reversing the net losses in the two years following the disastrous earthquakes. As a result of the trend, the country’s Reserve Bank is lifting its interest rate outlook for 2014 and has held the cash rate at 2.5 per cent.

According to senior economist at Westpac Bank Felix Delbruck, softer prospects in Oz and improved local economic prospects have boosted the net immigration figures and will have a positive knock-on effect on housing and consumer demand in New Zealand. He added that net immigration is slated to keep rising, topping 25,000 by the end of 2014.

Inflation in the real estate market is expected to have cooled by the end of 2014, due to higher mortgage interest rates and the effects of central bank lending restrictions. The country is also experiencing a hike in tourist numbers, with the six per cent year on year rise last month fuelled by Chinese and Australian holidaymakers.