Arrivals Boost Business, Property

ABS figures show the number of people arriving in Australia is quickly recovering since February when the international border opened.

There were 1.2 million arrivals in December, the highest since the reopening. Westpac economist Ryan Wells noted that arrivals and departures have already exceeded 50% of their pre-Covid levels, with the three-month average growth rate for arrivals being 11.4%.  

Wells also noted that net arrivals among key visa categories have shifted from net outflows to a historic recovery, especially among temporary workers and students.

The Federal Government’s official forecast for net overseas migration assumes 235,000 in 2022-23. Wells said the evidence suggests this number would be exceeded.

Property Investors Council of Australia chair Ben Kingsley says stronger immigration will add to housing demand. However, he also noted that many new immigrants will have building trades, which could put downward pressure on the cost of new home construction.

Rental markets are facing unprecedented pressure due to a combination of increasing demand and insufficient supply.