Returning Kiwis could put pressure on housing market
As economic growth in New Zealand remains positive more and more Kiwis who had left to take job opportunities in other countries appear to be returning home. There has been a big influx of workers to fill the labour shortages in Christchurch. However, the Reserve Bank of New Zealand has voiced concerns that this could put too much pressure on the already booming housing market.
ANZ senior economist Mark Smith said migration flows to cities such as Auckland will be watched carefully by the central bank as the housing market is unlikely to be able to withstand any extra demand stimulus.
According to the statistics bureau, June saw a four-year peak in the number of arrivals compared to departures. The number of people arriving from Australia was higher than it has been since records began.
Graeme Wheeler, Governor of the RBNZ, said Auckland and Christchurch were experiencing rapid inflation in house prices. Although he has promised to keep inflation at 2.5 per cent until at least the end of the year, many analysts are predicting a January rates-rise.
Wheeler himself is a returning expat having spent 15 years working abroad, including 13 years at the World Bank.
The NZD exchange rates on 20/08/2013 were as follows: GBP NZD = 1.9678, EUR NZD = 1.6856, USD NZD = 1.2562, AUD NZD = 1.1388, CHF NZD = 1.3694, INR NZD = 0.0198, AED NZD = 0.3423, MXN NZD = 0.0968, CAD NZD = 1.2084, ZAR NZD = 0.1238, RUB NZD = 0.0381, . See today's New Zealand Dollar Exchange Rate
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