Good news for the Auckland CBD: international students will begin returning from April.
Education Minister Chris Hipkins announced that 1000 international students will be permitted into New Zealand, with 300 due in April and the others arriving as places in managed quarantine become available.
Although this is just a tiny proportion of the 34,000 overseas students that come to New Zealand each year, it's estimated that those 1000 people will bring $49 million into the local economy. Last year in October, 250 PhD students also entered the country, so hopefully these increasing numbers are a trickle that will become a steady flow.
This news, combined with our hot housing market and impressively rebounding economy, show that things are going in the right direction. Our housing market is making international headlines, and had four record-setting months at the end of 2021 as the national median price reached just shy of $750,000.
It's true that the runaway growth in house prices is likely to be curtailed by the re-introduction of the LVR restrictions and our tourism industry is still in dire straits.
But our economy has performed unexpectedly well and borders will begin to slowly reopen. Right now, low unemployment, positive business sentiment and plenty of local spending over Christmas are all contributing to the feeling that the recovery will be a strong one.
"As it is, generally speaking we can enter 2021 with a lightness of step and a confidence that makes us the envy of many around the globe," as the Spinoff puts it.
If you're a property investor looking to buy soon, you will need to move quickly to secure the lowest interest rates and lower deposit requirements. Banks are already imposing their own LVR restrictions, so talk to your mortgage broker about whether you're in a good position to buy.
We are working in the market every day so let us know if you're thinking about buying and we can talk to you about prices, rents and other considerations: get in touch today.