Migrants may squeeze housing

Neha Joshi and Shivi Gupta.

Northland's tight housing market will be squeezed further with the arrival of new migrants willing to settle in provincial areas for a better chance at securing permanent residency, a real estate agent says.

The government has announced a raft of incentives for prospective immigrants, particularly skilled migrants, to skip Auckland and live in regions in return for more points. From November 1, migrants who live and work outside Auckland will get 30 of the 100 points needed for skilled migration instead of the current 10. The points for immigrants on an entrepreneur work visa will double to 40 if they set up business outside Auckland. The Skilled Migrant Category awards points for transferable skills and employability factors, including job offers, recognised qualifications and work experience in comparable labour markets.

Graham Lester, former REINZ spokesman for Northland, said changes would have a flow-on effect on the already tight housing market in Whangarei.

"There's already a shortage of low to mid-range houses as well as rental properties so if more people are looking at them, there's bound to have some effect on the property market and prices," he said. He hopes new immigrants were highly skilled and opened up businesses in Northland.

Indian nationals Shivi Gupta and Neha Joshi moved from Auckland to open a pizza outlet in Whangarei six months ago and welcomed changes to immigration rules.

"I think people should move out of Auckland and [the] recent announcement by government is a good idea to boost regional economies but there has to be jobs and opportunities in those areas as well," Ms Gupta said.

Both finished their business diplomas in Auckland but found it difficult to apply for their permanent residency due to a number of factors, including limited points and the nature of their work. As co-owners of Mad For Pizza on Kamo Rd, both now have a better chance of securing their residency visas.

Northland Chamber of Commerce chief executive, Tony Collins, said the region was poised to benefit from the initiative for a number of reasons, including its close proximity to Auckland and bringing more skilled workers to the region.

"Our geographic location is right on Auckland's doorsteps so it's an easier sell overseas where we can say to those with particular skillsets that Whangarei is only one-and-a-half hours north of Auckland."

Jim Loynes, client liaison and marketing manager at Oceania Marine, said he had noticed in the last 18 to 24 months people working in Auckland's marine sector moving to Northland for better opportunities in the sector and affordable living standards. However, he does not believe a requirement that new migrants live outside Auckland for a year in order to qualify for extra points was enough to recruit or retain skilled workers.

Northland MP Winston Peters said sending migrants to the regions for only a year instead of at least three years as other countries did, would have little effect on long-term settlement in the regions.

PwC's Michael Bignell said the incentives won't work if smaller towns aren't set up to take on more workers. Mr Bignell said small towns need to create a stronger economic framework.