Chinese millionaires who are affected by Canada’s decision to scrap the investor visa programme are now focusing on Australia for investing.
Canada is eliminating its Immigrant Investor Program (IIP) and Enterprenuer (EN) that were popular among the millionaire Chinese investors. This program had allowed foreign investors to obtain permanent residency in China , if they had a net worth of CAD 1.6 million and if they were willing to invest CAD 8,00,000 in government and give/provide that amoun to it as an interest-free loan.
According to some sources, the Chinese are now eyeing Australia instead for future investments, further to the decision of Canada to scrap the investor program.
It is then expected that the forthcoming investments from Chinese millionaires will reduce the threat of the Australian real estate market decline.
The Australian market is one of the top preferences for Chinese millionaires for future investment, a research from HSBC has stated. According to its survey, 1/3rd of the wealthy Asians possess properties overseas.
As per a survey of HSBC, 10% from Hong Kong and 9% from mainland China possess assets in Australia. This is good news that inspires some local Australian property developers.
Chinese possessions doubled Australian companies’ annual earnings in the year 2013. In the same year, about 15% of real estate and housing projects were sold to the overseas investors. Remarkable sales were made through the Hong Kong offices. Comopanies in Hong Kong and elsewhere, have set the2013 sales data as a benchmark, and they are now targeting the same level for the year 2014.
But, Australia should not be too positive about these types of investments, because the Canadian investor program did not yield good/positive results for its economy.