NZ house prices pushed up by immigration
New Zealand’s Labour party has indicated that it may look at placing controls on immigration in order to affect price inflation and housing demand. According to Labour immigration increases at times when the economy is strong. The party would like to see this cycle reversed by letting in more immigrants at times when the economy is subdued and tightening controls when the economy is healthy.
John Key, New Zealand’s Prime Minister dismissed the proposal. He explained that the country has done well out of skilled migrants bringing in expertise and capital. He added that it was not a matter of reducing the number of migrants entering New Zealand, rather making sure that there is enough housing to go around.
Mr Key went on to say that the country needed to bring in workers from abroad for a number of reasons. The rebuild in Christchurch is currently drawing in skilled workers from overseas because of a shortage of home-grown talent.
The Prime Minister pointed out that historically New Zealand lost nationals to other countries. He added that the number of people leaving for Australia was at a record low.
If Labour makes it in to power at the next election they are likely to examine how immigration affects the economy in more detail.
The NZD exchange rates on 02/05/2014 were as follows: GBP NZD = 1.9478, EUR NZD = 1.6009, USD NZD = 1.1543, AUD NZD = 1.0708, CHF NZD = 1.3147, INR NZD = 0.0192, AED NZD = 0.3145, MXN NZD = 0.0887, CAD NZD = 1.052, ZAR NZD = 0.1101, RUB NZD = 0.0323, . See today's New Zealand Dollar Exchange Rate
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