New Zealand Economy

9

Labour’s election promise shattered as NZ immigration climbs

In the lead-up to the September 2017 general election, the New Zealand Labour Party launched a plan to reduce immigration by around a third in a bid to relieve chronic housing and infrastructure pressures (especially around Auckland): …in recent years our population has been growing rapidly as record numbers of migrants arrive here. This has

2

More evidence New Zealand’s ‘skills-based’ visa system is failing

Much like Australia, New Zealand purports to run a ‘skills-based’ visa system that plugs critical skills shortages across the nation. However, new data from Statistics New Zealand actually shows that fewer of those migrating to New Zealand are of working-age. From Interest.co.nz: The Government’s decision to open the door to the parents of migrants to

12

NZ Government opens visa sluice gates

In the lead-up to the September 2017 general election, the New Zealand Labour Party launched a plan to reduce immigration by around a third in a bid to relieve chronic housing and infrastructure pressures (especially around Auckland): …in recent years our population has been growing rapidly as record numbers of migrants arrive here. This has

22

NZ’s housing shortage goes from bad to worse

Results from the New Zealand Census shows that the country’s housing shortage worsened materially in the five years to 2018 as mass immigration-fuelled population growth easily exceeded the number of dwelling additions: The figures show that between the 2013 and 2018 censuses this country’s usually resident population increased by 10.8%, while the total number of

17

Temporary visa deluge fuels modern slavery

The OECD’s annual review of migration trends has revealed that Australia and New Zealand have the largest temporary migrant workforces in the world, which is raising competition for lower-income workers and suppressing wages: Australia had almost 750,000 permits for temporary migrants on issue in 2017, second in total number only to the US. As a

2

NZ GDP growth slowest since 2013

Statistics New Zealand has released national accounts figures for the June quarter of 2019, with Gross domestic product (GDP) rising by 0.5% over the quarter. Between the June quarter of 2018 and the latest June quarter GDP rose 2.1%, which was the slowest rate since December 2013. As shown below, services drove the GDP growth,

47

Governments open temporary visa floodgates

It never ceases to amaze how our dishonest governments pull the wool over voters’ eyes on immigration. In Australia, we’ve recently witnessed the Morrison Government wax lyrical about reducing immigration to “relieve congestion in the cities”, only to then see the number of temporary visas balloon to unprecedented levels, as illustrated below: Accordingly, net overseas

1

Auckland house sales crash to 2010 levels

The REINZ has released its house price data for July, which revealed a 0.6% increase in values over the month, with values nationally also increasing by 5.4% year-on-year: Outside of Auckland, seasonally adjusted house prices rose by 2.2% in July, with prices up 6.5% year-on-year. Whereas Auckland’s seasonally adjusted median house price fell by 1.2%

17

NZ Government waves white flag on Kiwibuild

Earlier this year, Housing Minister Phil Twyford backslid on the Government’s ‘KiwiBuild’ program to build 100,000 public houses, delaying the start date and changing the policy from “build” to “facilitate” the “delivery of 100,000 affordable dwellings”, as well as changing the definition of “affordable”. Now, the NZ Government has waved the white flag, abandoning its

4

NZ dwelling consents hit 1970s highs, but shortgage remains

Statistics New Zealand has released its monthly dwelling consents data, which reveals that dwelling consents hit their highest level since the 1970s in annual terms: And this ‘boom’ has been driven by Auckland: The problem is, New Zealand’s population is around two-thirds larger than it was in the mid-1970s, and has accelerated recently driven by

1

NZ unemployment falls to 11-year low

Statistics New Zealand has released its labour force data for the June quarter, with the unemployment rate falling 0.3% to an 11-year low of 3.9%. Below are the key points from the release: Unemployment rate fell to 3.9% – lowest since June 2008. Underutilisation rate fell to 11.0% – lowest since September 2008. Employment rate

7

Foreign buyer ban spanks NZ house prices

In August last year, New Zealand’s Labour-led coalition Government introduced legislation to amend the Overseas Investment Act to preclude foreign buyers from purchasing residential property. The legislation came as Statistics New Zealand data showed that foreign buyers had gobbled one-in-ten inner Auckland homes: In the September 2018 quarter, 9.8 percent of home transfers in Auckland inner city (Waitemata

18

So much for Liar Adern “Backing the Kiwi Dream”

In the September 2017 general election, the New Zealand Labour Party launched a plan to reduce immigration by 20,000 to 30,000 in a bid to relieve chronic housing and infrastructure pressures (especially around Auckland): …in recent years our population has been growing rapidly as record numbers of migrants arrive here. This has happened without the

2

Auckland house prices rebounding

The REINZ has released its house price data for June, which revealed a 0.3% seasonally adjusted rise in the national median house price, with prices up 1.7% year-on-year: Outside of Auckland, seasonally adjusted house prices rose by 0.4% in June, with prices up 6.5% year-on-year. Auckland’s seasonally adjusted median house price rose by 0.1% in

5

The sad death of the Kiwi dream

Statistics New Zealand has released data showing that the growth in renting households continues to dwarf the growth in owner-occupied households: The number of households renting their homes is increasing at almost twice the rate of those who own their own homes, according to the latest estimates from Statistics New Zealand. Statistics NZ estimates there

5

Former BoE chief economist backs RBNZ bank capital hike

By Leith van Onselen The Reserve Bank of New Zealand’s (RBNZ) proposal to impose higher capital requirements on the local arms of Australian banks has been defended by John Vickers, the Bank of England’s former chief economist. He argues that the public benefit of safer banks outweighs any risks associated with such a move. Vickers

32

As migrants flood Auckland and Sydney, locals are forced out

By Leith van Onselen Auckland and Sydney have much in common. Both are the largest cities in their respective nations. Both are harbour cities. Both have ridiculously expensive housing, with median dwelling values that hover near the $1 million mark. And both are the international gateways to New Zealand and Australia, and thereby attract the

6

RBNZ Governor destroys banking lobby rentiers (plus APRA and RBA)

By Leith van Onselen At a press conference yesterday, RBNZ Governor, Adrian Orr, publicly lashed the New Zealand Bankers’ Association (NZBA) for claiming that taxpayers should bail the sector out in the event of a crisis, and has used these comments as justification for the RBNZ’s capital reforms. From Interest.co.nz: Orr was answering a question about

16

NZ to announce world’s first ‘wellbeing’ Budget

By Leith van Onselen New Zealand’s Labour-led coalition government will tomorrow release the world’s first ‘wellbeing budget’, which will measure its success against how it does socially, culturally and environmentally, rather than relying on GDP – a rather useless measure that most economists and policy makers focus on. From SBS News: “Nobody wants to live

8

RBNZ: “imperative” Australia’s banks lift capital levels

By Leith van Onselen The Reserve Bank of New Zealand (RBNZ) has released its latest Financial Stability Report (FSR), which explained why banks need to hold more capital: Domestically, debt levels are high in the household and dairy sectors, leaving borrowers and lenders exposed to unanticipated events. Similar challenges exist globally, given current high public

32

Fake news: NZ suffering post-immigration business crunch

Via the AFR today: New Zealand pub owner Chris Dickson worries his staff is overworked. He expected employment visas for two new overseas workers to be approved weeks ago, but the paperwork was delayed with no clear reason given. …”We are struggling to find people,” Dickson said. “It’s an epidemic.” …A plunge in net immigration

5

NZ house prices rise as volumes crash

By Leith van Onselen The REINZ has released its house price data for April, which revealed a 1.9% seasonally adjusted rise in the national median house price, with prices up just 6.3% year-on-year: Outside of Auckland, seasonally adjusted house prices rose by 1.4% in April, with prices up 7.5% year-on-year. Looking at the major cities,

10

Jacinda Ardern breaks key election pledge to cut immigration

By Leith van Onselen In the September 2017 general election, the New Zealand Labour Party launched a plan to reduce immigration by around a third in a bid to relieve chronic housing and infrastructure pressures (especially around Auckland): …in recent years our population has been growing rapidly as record numbers of migrants arrive here. This

12

Foreigners desert NZ housing market

By Leith van Onselen Statistics New Zealand has released new data on non-resident purchases of New Zealand homes, which reveals that demand has collapsed: Home transfers to people who didn’t hold New Zealand citizenship or a resident visa fell over 80 percent in the March 2019 quarter compared with the same quarter a year ago, Stats