AUSTRALIA 457 VISA RESTRICTION TO BE FULLY IMPLEMENTED FROM MARCH 2018 MAKING DIFFICULT FOR FOREIGN WORKERS TO COME TO HIT THE PROPERTY MARKET IN A BIG WAY AS MAXIMUM AVAILED BY INDIANS
457 Visa restrictions to hit property demand: UBS
They say Indians are the largest 457 visa users and the fastest growing migrants, while Chinese are a bigger student category but small 457 users.
"The [Indian] demographic is the largest user of the 457 visa and are more reliant on the path from student to permanent resident based on the data. Anecdotally this demographic is over represented in Sydney and Melbourne land projects."
The analysts expect that developers of land, such as the largest listed group Stockland, will face pressure while developers of apartments, such as Mirvac, will escape the changes largely unscathed.
The National Property Research Company's Matthew Gross, who is a business liaison to the Reserve Bank of Australia on real estate, said net migration is one of the most important drivers of the property market.
"When you start taking out migration numbers then you might find yourself in a situation where you have more product than end users," Mr Gross said.
"Without an end user your product slows – its like the mining towns when the miners moved out – vacancy rates rose and asset prices declined."
In June 2016 overseas migration for NSW showed a net increase of 76,000 while Victoria recorded 68,000 and Queensland third largest with a net increase of 21,000.
"Australia's property market would be so much worse off if it did not have the level of immigration we have had in the last 4 to 5 years."
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