Tuesday 20 Nov 2018
Real Estate News
According to The Guardian, Scott Morrison has flagged cutting immigration numbers based on advice from the states. So what does this mean for the real estate industry?
Lucky for Queensland and in particularly Brisbane, this potential cut shouldn’t affect house demand or prices – why you ask? Simple, the affordability of Brisbane City still makes it a sought after area for interstate migrators and overseas migrators. Population growth is expected to boom over the next 25 years, even if migration numbers are reduced.
An important piece of information about this potential immigration cap is that our immigration levels are still 30,000 a year below the current cap. The prime minister stating that economic success is a crucial focus for the government, this is why they are planning to send migration to states that are planning for population growth (we imagine they mean Queensland, as it is the Nation’s top performing growth area).
Australia’s strong population growth is directly influenced by immigration from other countries, such increase in immigration rates also puts demand on housing. Immigration tends to pocket around areas that show the most potential for job employment; areas such as cities. The government sees substantial economic benefits of high rates of immigration and therefore will strategically pay attention to the effects of policy changes that may affect immigration rates.
Therefore rather than cap unnecessarily, the government is aiming to plan strategically so that roads can cope with the quantities of people entering the country. A meeting will be held in December to discuss this further with state and territory leaders. We will report further as we find out more.