Australians are concerned increased international migration will increase demand for properties and affect housing affordability.
A survey by Send Money Australia of 1,002 Australians found 84% believe boosting migration in the current financial year will help the economy by filling skilled jobs and increased spending.
But 65% are also worried it will mean that house prices and rents will increase further.
The Federal Australian Government increased the number of overseas migrants it will accept this financial year from 160,000 to 195,000.
Loan Lounge director Nathaniel Truong says the higher intake will have both positive and negative impacts.
“The positives are increased demand from migrants wanting shelter for themselves and their families and once they are established, it’s a common dream to own an investment property,” he says.
“This will help drive property prices, construction growth and demand for investment opportunities.”
On the downside, he says it will put further pressure on housing prices and supply which will cause affordability issues.
“There is also pressure on rental yields leading to overcrowding and social issues such as homelessness,” he says.
About 45% of respondents are concerned increased migration will lead to unemployment and job competition.
Truong says if it leads to unemployment this could impact the property market, affecting an owner’s ability to repay their loan. “(But) I feel the increased competition will be positive for the property market and economy,” he says.
Almost half of the respondents think increased migration will be an overall boost to the economy.
