Record migration means need for regional incentives

Demand pressures on the Auckland market will continue as New Zealand receives its highest ever annual inflow of migrants – but could there be a solution?

Thursday, May 21st 2015, 12:00AM

by Miriam Bell

According to the latest migration data from Statistics New Zealand, the April 2015 net gain of 56,800 migrants was well above the net gains of 34,400 in the April 2014 year and 4,800 in the April 2013 year.

The increased net gain of migrants was driven by both more arrivals (up 16% on April 2014) and fewer departures (down 11%).

Over April 2015 itself, there was a seasonally adjusted net gain of 4,700 migrants.

For the first month since 1991, there was a net gain of migrants from Australia and the net loss of people to Australia was the smallest since 1992.

Westpac senior economist Satish Ranchhod said the weak Australian economy is keeping New Zealanders at home.

“At the same time, New Zealand’s strong economic outlook is continuing to draw in foreign workers in historically very large numbers.”

He expected that net immigration will remain strong over the coming year, approaching a net inflow of 60,000.

These figures indicate that the strong demand pressures on Auckland’s housing market are likely to continue in the foreseeable future.

However, Immigration Minister Michael Woodhouse has said the government is set to give skilled migrants, investors and those planning to bring businesses to New Zealand extra points if they settle outside Auckland.

Skilled migrants and those on entrepreneur visas already gain 10 points in the immigration points system if they say they intend to settle outside of Auckland.

Woodhouse said the point settings could be bumped up to incentivise those who could make a contribution to regional development.

Labour Finance spokesperson Grant Robertson said migrants should be encouraged to find their way across New Zealand, but that a proper regional development policy was also neccessary.

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