Proposed changes to the Significant Investment Visa (SIV) program may reduce the number of foreign investors entering Australia’s housing market.
The federal government has announced plans to ban investors to have more than 10% in residential properties from 1 July.
Data from the Department of Immigration and Border Protection said of the 1,497 SIV applications from 24 November 2012 to 30 June 2014, 1,224 were at the interview stage. Ninety-one per cent were from Chinese nationals.
The proposed rules will have immigration consultants expect investors to shun Australia’s SIV program and start to look for more viable alternatives like business visas or the Investor Stream Visa, REB Online reported.
Moreover, the proposed changes will also prohibit the direct purchase of government bonds, which are another favoured choice for Chinese investors, in addition to residential properties.