Reducing immigration will affect Australian economy and real estate
Analysts have warned that a recent decline in Australian immigration could create a major drag on the real estate market and the Australian economy for years to come.
The latest data from the Australian Bureau of Statistics (ABS) show that overall population growth rates and immigration in particular have plummeted.
Economist Georgan Murray of the Australian Chamber of Commerce warned that the decline could have a profound impact on Australia. “The 28-year track record of Australia’s economic development is built on the very foundations of skilled Australian immigrants,” he said.
According to Murray’s analysis, skilled immigration is essential to compensate for the aging population of Australia. In fact, Victoria and New South Wales are the states that have benefited most from immigrants in recent years but also have a slower population growth rate.
This has led to reduced housing demand and a direct impact on the growth of Australia’s retail and residential construction industry, the two most labor-intensive sectors in Australia.
In the world, many great powers have made great use of their immigration resources to develop their economy and rise to the top. America is a prime example. The ancestors of Sergei Brin (founder of Google), Elon Musk (founder of Telsa) and Jerry Yang (founder of Yahoo) all came to America through immigration.
Australian economists have confirmed that major changes to the Australian visa program in April 2017 were responsible for the slow growth. Since then, the number of Australian immigrants has fallen by 9% since March, and population growth has fallen by a quarter to 1.6%.
Experts also predict that the Morrison government will make further adjustments to maintain and promote “immigration advantages” that have contributed to Australia’s nearly three decades of uninterrupted growth.