Surging migration and Auckland’s property price boom

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New Zealand’s population increased by nearly 100,000 people in the year to June, it’s biggest annual increase ever, with most of the rise coming from migration.

Statistics New Zealand estimates this country’s population grew by 97,300 in the year to June, taking the total population to an estimated 4,693,000.

“The last time we experienced population growth over 2% was in 1974, and before that, at the peak of the baby boom in the 1950s and early 1960s,” Statistics NZ senior manager Jo-Anne Skinner said.

There has also been a massive increase in the number of Britons and Americans planning to come to New Zealand since Britain’s Brexit vote and Donald Trump’s political rise. The surge in interest in New Zealand was confirmed as the Real Estate Institute compiled a chart laying bare the strong connection between net migration and house price rises.

Kiri Barfoot, a director at Auckland estate agent Barfoot and Thompson, said migration was certainly a factor in Auckland’s house price boom though she did not believe it was the biggest. “You’ve not only got external immigration, where they come from overseas, but you’ve got people coming from other parts of New Zealand as well. If there was enough supply in Auckland, prices would stay the same.”

But even if migration fell back again, Auckland needed 14,000 houses a year and was only building about half that.

Contact us at Metro NZ today to find out how you as an investor can take advantage of the supply shortage and secure yourself a successful investment property.

References:

http://www.stuff.co.nz/business/industries/82378112/Britons-and-Americans-hammering-at-the-door-Immigration-NZ-figures-show

http://www.interest.co.nz/property/83067/nzs-populaton-grows-fastest-rate-ever-year-june-back-surging-migration

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