Australia sees rush of Hong Kong millionaires as unrest rumbles on
- The New South Wales state migration department said there is a rise in applicants for the millionaires-only visa programme
- China’s largest international property website has also seen ‘some increase’ in demand for Sydney property by Hong Kong buyers
The New South Wales state migration department “has noticed a significant increase in applications” from Hong Kong in recent months, it said in a letter to agents this week.
The interest has coincided with the “beginning of the current unrest in Hong Kong”, the department said, referring to a A$5 million (US$3.4 million) Significant Investor Visa (SIV) programme that provides direct residency to applicants.
Bill Fuggle, Sydney-based partner at law firm Baker & McKenzie, said there had been a rise in applicants for the A$5 million SIV programme.
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“What I am hearing from my clients is there definitely has been an uptick in the number of SIV applications from Hong Kong,” Fuggle said.
“Anybody who can make an alternate plan is trying to do so.”
Australia’s New South Wales treasury department confirmed that the immigration team’s letter was sent out to migration agents on Monday but declined to provide any further details, saying only that the increase was off a small base.
In the letter, the department assured agents it was committed to providing “appropriate support” to help them discuss migration options with their clients.
The SIV programme used to be hugely popular with people from mainland China, though recent strict investment requirements have somewhat dented its appeal.
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The SIV now requires at least 40 per cent of the A$5 million to be invested in small-cap and venture capital (VC) funds while direct real estate investment is barred.
“Money is also moving out but Australia is probably not your first choice to park wealth … it’s a high tax jurisdiction. I suspect we’ll get more people than money here,” Baker & McKenzie’s Fuggle said.
Data on applications received or visas granted in recent months was not available as Australia publishes these figures only annually.
According to the latest data, China accounted for 87 per cent of the 2,022 SIV visas granted between November 2012 and June 2018 while Hong Kong stood a distant second at just 3.2 per cent.
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“Purchasing real estate is not the first step in coming to this country. More important is to obtain legal residency,” Chmiel said.
“Over the next two to five years, there could be a substantial impact on the property market as these individuals look to settle down and purchase, but for now, it is too early for that.”
