The dampened down New Zealand housing market may be linked to the reduction in migration numbers to the country according to leading economist at Goldman Sachs & Partners NZ. At the same time monthly activity in the NZ property showed a flurry of sales occur in November 2010
Slowing net migration is factor contributing to weak demand for new housing and weak retail spending growth,” said Jane Turner, economist at ASB. “We expect that net migration will remain subdued for the time being and a key factor in household sector being less of a driver of growth in the current economic recovery.”
Philip Borkin, economist at Goldman Sachs & Partners NZ Ltd., said today’s data didn’t do anything to damp their expectation that net migration could be a key driver for house prices in 2011
Seasonally adjusted net migration slipped to 630 last month from 640 in October, though it’s down by nearly a third from the same month a year ago.
The Real Estate Institute of New Zealand said a total of 5,138 homes were sold in November, compared with 3,903 in October.
“The indications of a lot more listings noted at the beginning of last month have led to a late flush of spring activity,” said REINZ spokesman Bryan Thomson. “With pent-up levels of people now in the market who need to buy or sell homes, we can expect the increased activity to continue through December and the summer without the usual slowdown over Christmas,” he added.
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