{"id":2952,"date":"2022-07-02T05:50:22","date_gmt":"2022-07-02T05:50:22","guid":{"rendered":"https:\/\/royabhishek.in\/urbanbuyer\/migration-is-part-of-a-complex-chess-game-in-construction-housing\/"},"modified":"2022-07-02T05:50:22","modified_gmt":"2022-07-02T05:50:22","slug":"migration-is-part-of-a-complex-chess-game-in-construction-housing","status":"publish","type":"post","link":"https:\/\/royabhishek.in\/urbanbuyer\/migration-is-part-of-a-complex-chess-game-in-construction-housing\/","title":{"rendered":"Migration is part of a complex chess game in construction, housing"},"content":{"rendered":"

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<\/p>\n

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According to a very obscure online resource*, there are 318,979,564,000 possible ways to play the first four moves of chess, and in the end, just one to win.<\/p>\n

Which way to move in response to current housing challenges is proving equally as complex, and the clock is ticking for government and industry leaders to make the next move.<\/p>\n

Skilled migrants are one of the key pieces in addressing labour shortages<\/a> and shoring up property demand but it\u2019s not as easy as, \u2018build it and they will come\u2019.<\/p>\n

A housing shortage nationwide is groaning with the need for new dwellings that can\u2019t be built en-masse thanks to a labour shortage and supply chain and material delays, such as timber, putting pressure on costs and property availability.<\/p>\n

Domestic and international migrants are being held up as post-Covid beacons of hope from which a short-term, skilled workforce might be forged but in reality, visas for skilled workers are bogged down by a backlog measured in years.<\/p>\n

Australia now also competes with a global market actively trying to recruit the same workforce.<\/p>\n

Unfortunately, governments have neglected to invest in skilling-up its local workforce in preference for skilled migrants who contribute 10 per cent more to the economy than locals, according to research from the Migration Council of Australia.<\/p>\n

The real issue according to Queensland\u2019s Sunshine Coast Direct Collective CEO and property expert Mal Cayley, is an undersupply of dwellings<\/a>.<\/p>\n

\u201cDemand and construction challenges are not the problem they are a current challenge,\u201d he said.<\/p>\n

\u201cThe issue isn\u2019t demand; the issue is supply and the lack of supply is from the negligence of multiple governments over multiple decades, so the solution therefore is about supply.<\/p>\n

\u201cThe Sunshine Coast is one of the most undersupplied markets<\/a> in the country and internal migration is adding fuel to prices and rents as it continues to increase the pressure for a scarce commodity,\u201d he said.<\/p>\n

They\u2019re not going wait – they\u2019re going to get married, they\u2019re going to settle down in their home country, and they\u2019re not going to come.<\/span><\/p><\/blockquote>\n

– Ben Watt, Visa Envoy migration lawyer and agent\u00a0<\/span><\/p>\n

Addressing Queensland\u2019s parliament recently, Maroochydore MP Fiona Simpson accused the state\u2019s government of failing to recognise the urgency or size of the housing crisis, and instead ignoring it.<\/p>\n

\u201cProperty analysts estimate the shortage of houses required on the Sunshine Coast is about 2,000 homes per year – if you simply blame covid and interstate migration you will be doomed to miss the underlying problems and then fail to provide the right solutions to help address these issues,\u201d Ms Simpson said.<\/p>\n

Mr Cayley said if it were an earthquake displacing thousands of people instantaneously, the reaction would be different.<\/p>\n

\u201cThe community would be out on the streets, crisis funding would be available, and the normal way of responding to the day-to-day would be dramatically changed.<\/p>\n

\u201cThis is the \u2018response\u2019 thinking we need right now – immediate, all-encompassing, dramatic and pivoting,\u201d he said.<\/p>\n

More investment in training local workers might be a good start.<\/p>\n

Juwai IQI\u2019s Group Managing Director, Daniel Ho, pointed to the observation of Infrastructure Australia, which says the demand for builders is 48 per cent higher than supply.<\/p>\n

\u201cAustralia needs more training programs to develop workers locally and it needs more migrants to fill the gaps,\u201d Mr Ho told Australian Property Investor Magazine<\/em>.<\/p>\n

\u201cWhen it comes to the overstretched construction industry<\/a>, migration is absolutely necessary because Australia just doesn\u2019t train enough skilled workers.<\/p>\n

\u201cAustralia\u2019s migration programs prize these skilled workers in many building trades.<\/p>\n

\u201cThey can relatively easily obtain permanent residency and eventually citizenship.\u201d<\/p>\n

Domestic and international migrants are putting pressure on housing prices.<\/p>\n

\u201cMigration\u2019s impact on housing prices<\/a> is more local than national,\u201d Mr Ho said.<\/p>\n

\u201cCensus data shows that when new migrants increase the population of a particular post code by 1 per cent, housing prices there also increase by nearly 1 per cent per year.<\/p>\n

\u201cNationwide, migration has contributed about 1.1 per cent to house prices per annum this century.<\/p>\n

\u201cThat\u2019s not enough to transform a lagging market into a booming market.\u201d<\/p>\n

It\u2019s a trend seen in Perth by Paul White, Director of SMATS Group\u2019s aussieproperty.com.<\/p>\n

\u201cI recently sold a property in Perth\u2019s blue chip western suburbs with multiple offers and half of those were from eastern states buyers looking to purchase here in Perth, as they need somewhere to live and given the rental shortages, they felt it was easier to buy than rent.<\/p>\n

\u201cTo alleviate these issues, we need to see an increase in skilled labour, however, it\u2019s difficult because the increase in population will only place further stress on the rental market as those crossing the borders will need somewhere to live,\u201d Mr White said.<\/p>\n

Mr Cayley said it\u2019s the same in Queensland.<\/p>\n

\u201cThe volume and wide-ranging demographic profile of migrants has seen pressure in all areas of the market – even the most affordable homes have increased in price and as renters are displaced by owner occupiers, the lack of any supply has seen people pay high prices just to secure something.\u201d<\/p>\n

Regional migration shift<\/strong><\/p>\n

While regional Australian communities love the idea of increasing the population of their towns, the news is the same.<\/p>\n

New data from the Regional Movers Index March 2022 Quarter Report<\/a><\/em> indicates regional migration is at a five-year high and young people are driving growth.<\/p>\n

\u201cThere are labour shortages in many parts of regional Australia and local businesses are attracting skilled and unskilled workers to increase capacity and serve growing demand for products and services,\u201d Commonwealth Bank Regional and Agribusiness Banking Executive General Manager Paul Fowler said.<\/p>\n

The report compiled by CBA and the Regional Australia Institute shows, by annual growth in migration, the top five Local Government Areas (LGAs) are in South Australia; including a 114 per cent increase in Ceduna, 85 per cent in Mount Gambier and 74 per cent in Port Augusta, as well as a 56 per cent increase in Western Downs, Queensland, and 56 per cent in Moorabool, Victoria.<\/p>\n

Migration from capital cities to regional Australia increased by 16.6 percent in the March quarter of 2022, accounting for 6.4 per cent of all relocations.<\/p>\n

There is now a slight swing of migrants<\/a> heading back to the cities, nudging net migration to regions lower by 3.2 per cent.<\/p>\n

Overall, rates are high compared to pre-covid levels, up by 97.8 per cent on the average during the two years prior to the pandemic.<\/p>\n

The most popular destination is the Gold Coast in Queensland, attracting 11 per cent of people from major capitals in the 12 months to March 2022. The next most popular are the Sunshine Coast, Greater Geelong in Victoria, and Wollongong and Newcastle in NSW.<\/p>\n

No magic wand<\/strong><\/p>\n

Popularity is both a blessing and a curse.<\/p>\n

\u201cFinding enough workers has always been a problem, but this is the first time I\u2019ve seen it where it\u2019s such a problem as in, there\u2019s just nothing,\u201d Canberra-based Visa Envoy migration lawyer and agent Ben Watt told API Magazine<\/em>.<\/p>\n

\u201cMy clients in that sector, like a tiling company or building company, cabinet makers, are really struggling because they can\u2019t find workers to come in and fill the positions even though they\u2019re offering very generous salaries, and it\u2019s just impossible to find the workers to staff the businesses.<\/p>\n

\u201cSo, that means they\u2019re saying no to work, like a high rise that\u2019s going up that needs all the cabinets made, but you can\u2019t take the job, because you haven\u2019t got enough people, and that\u2019s also a terrible thing for the wider economy,\u201d Mr Watt said.<\/p>\n

Are more migrants the answer?<\/p>\n

\u201cI don\u2019t think migration is a magic wand but migration can certainly help,\u201d he said.<\/p>\n

\u201c<\/span>There are two types of migrants that work in the construction sector. One of the major occupations is engineering, such as civil engineers, electrical engineers, structural, technical engineers, who can work on major building projects.<\/p>\n

\u201cYou\u2019ve got construction project managers and similar professions.<\/p>\n

\u201cOn top of that, you\u2019ve got young people coming in and a lot of them have got trades in their home country, so a lot of young electricians, bricklayers, irrigation specialists, and the like are coming in on holiday visas.<\/p>\n

\u00a0\u201cIt\u2019s very, very good for the construction sector to have waves of people with trade skill sets coming in every year, as we didn\u2019t have to spend a cent subsidising anyone at TAFE to get them,\u201d Mr Watt said.<\/p>\n

Right now, however, there is a backlog of visas to be processed where wait times have blown out to years. Prospective professionals and skilled workers aren\u2019t just pinning their hopes on working in Australia.<\/p>\n

\u201cThey\u2019re not going wait – they\u2019re going to get married, they\u2019re going to settle down in their home country, and they\u2019re not going to come.<\/p>\n

\u201cIt\u2019s particularly galling, that little capricious, \u2018oh, you can apply for these multiple visas, you can make a plan, but we\u2019re not going to process it\u2019,\u201d Mr Watt said.<\/p>\n

\u201cIt\u2019s permeating the entire visa program – there\u2019s a lot of red tape, a lot of confusion and difficulty to apply for one of these visas directly from offshore.<\/p>\n

\u201cFor a very skilled, senior professional that has to jump through 50 hoops, and some of them paid close to $10,000, they\u2019ve got all their papers, their family\u2019s papers together since 2019, and they\u2019re still waiting.<\/p>\n

\u201cThe good ones are not going to put their lives on hold for five years waiting.<\/p>\n

\u201cWe\u2019re acting like they don\u2019t have other options, but they do and they are moving to Canada, the US and other places,\u201d Mr Watts said.<\/p>\n

On the chess board of the construction sector, it\u2019s looking like it\u2019s in check and staring at the real possibility of checkmate.<\/p>\n<\/p><\/div>\n

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[ad_1] According to a very obscure online resource*, there are 318,979,564,000 possible ways to play the first four moves of chess, and in the end, just one to win. Which way to move in response to current housing challenges is proving equally as complex, and the clock is ticking for government and industry leaders to […]<\/p>\n","protected":false},"author":1,"featured_media":2953,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[84],"tags":[],"class_list":["post-2952","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-building-and-construction"],"yoast_head":"\nMigration is part of a complex chess game in construction, housing | Urban Buyer: Buyers Agent & Advocates | Best Property Buyers For You<\/title>\n<meta name=\"description\" content=\"According to a very obscure online resource*, there are 318,979,564,000 possible ways to play the first four moves of chess, and in the end, just one to\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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