The Government’s recent announcement to cut immigration intakes by 14 percent in a bid to protect jobs has been welcomed by AMP capital economist Shane Oliver.
According to Oliver, the cut back on immigration will ease housing shortages, particularly in Sydney and Melbourne.
“Now that we’re cutting back on the immigration level, naturally it will cut back the demand for housing.”
He has signalled that the pressure currently being felt in the rental market will ease.
“It’ll be the rental market that will be affected by this and that could help take some of the upwards pressure off rents.”
Many have welcomed the move by the Government to cut immigration, with Opposition leader Malcolm Turnbull in agreement with the Government.
“We’ve been calling for the Government to cut its immigration intake for months now in light of the worsening economic situation so this is a welcome move,” he said.
“It’s good that they’ve finally recognised the gravity to the threats to jobs in Australia and acted to reduce the immigration intake.”