Slowing NSW migration to reduce Sydney housing demand

Migration into NSW has declined sharply with demand for housing set to slow – particularly in the high-priced Sydney housing market.

Latest ABS data reports that NSW total net migration – inclusive of overseas and interstate totals – fell by 20.2 percent over the December quarter 2015 to 13,502.

Although seasonal factors contributed to the typically lower December total, total migration was nonetheless lower than the 13,721 reported over December 2014.

NSW reported total migration of 59,619 over 2015 which was 4.6 percent below the 62,511 recorded over the previous year.

Despite the decline in migration over the past year, the total for 2015 was the second highest annual result recorded since 2008.

Total migration numbers into NSW remain relatively high and with the Sydney market remaining under-supplied for housing, underlying demand will continue to track ahead of supply resulting in continued upward pressure on house prices.

Dr Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson – My Property 2UE Fridays 2-3pm, Saturdays 1230-1pm