A big turnaround in the trans-Tasman brain drain is poised to put new pressure on house prices and has the Government scrambling to build new classrooms.
Experts are predicting that, by the end of the year, the number of Kiwis heading across the ditch will be outpaced by the number returning - which has not happened since 1993.
Bank of New Zealand economist Tony Alexander said yesterday he expected the crossover point to come this year. The main driver was fewer Kiwis leaving for Australia "because the allure of Australia has diminished quite a bit".
"A lot of chooks have come home to roost in their federal budget management, in their manufacturing sector and also their resource sector, coming off an exceptionally high level so . . . a big reality check."
Alexander said the migration surge would likely add pressure to house prices - making it less likely the Reserve Bank would ease restrictions on the size of deposit required for mortgage lending.
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