Will Canada’s Loss be Australia’s Gain?
By Athena Yenko | February 25, 2014 1:35 PM EST
Rich Chinese investors affected by Canada's decision to stop giving visa for its foreign investor programme are eyeing Australia for future investments.
On Feb 12, CNN reported that Canada was dumping its investor programme popular among rich Chinese investors. The programme permitted foreign investors to acquire permanent residency in China provided they have a minimum net worth of C$1.6 million and that they were willing to invest C$800,000 through a multi-year government loan without interest.
Canada's decision to scrap its investor programme led rich Chinese investor to eye Australia for future investments - a positive gain, according to Tyndall Asset Management's head of fixed income, Roger Bridges.
According to Mr Bridges, future investments among rich Chinese will trim down the threat of real estate market decline in Australia. He said that Chinese investors saw the country's housing market as "low probability, high impact" market.
A research from HSBC Bank found that the Australian market is one among the top choices among rich foreign investors. One-third of rich Asians acquired properties abroad, according to the survey.
This had been good news among local property developers.
Australand, for example, said that Chinese acquisitions almost doubled the company's annual earning average of 8 per cent as it sold about 15 per cent of its housing projects to foreign investors in 2013. There was an impressive sales made through its office in Hong Kong. Australand said that with the 2013 sales as its basis, it can now target the same level of earning for 2014.
However, some real property analysts said that Australia should not be overly optimistic, after all, Canada dumped its investor programme because it recognised that it was not instrumental in boosting Canada's economy.
"For decades, it has significantly undervalued Canadian permanent residence, providing a pathway to Canadian citizenship in exchange for a guaranteed loan that is significantly less than our peer countries require. There is also little evidence that immigrant investors as a class are maintaining ties to Canada or making a positive economic contribution to the country," the Canadian Ministry of Finance wrote in its 2014 budget report.
To contact the editor, e-mail:
Most Popular Slideshows
- NFL MNF: Pittsburgh Steelers 30, Houston Texans 23 [PHOTOS]
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
- NFL Thursday Recap - Denver Broncos 35, San Diego Chargers 21: Peyton Manning Has 3 TDs In Easy Win [PHOTOS]
Join the Conversation
- Economic Growth In US And Sub-Saharan Africa Allay 2015 Recession Fears
- Travel Alert: Over 200 Canadians Infected with Mosquito-Borne Chikungunya Virus
- Canadian Ebola Drug: Tekmira Firm Starts Limited Manufacturing of Vaccine, Available By December; Shares Up
- US Dedicates 5 Airports for Travellers From Ebola-Stricken Nations, Lawmakers Want Travel Ban
- Australia's Low Birth Rate May Be Due to Low Confidence in Economy
- Xiaomi Redmi 1S vs. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- ASUS Releases A Teaser Indicating The Arrival of New Zenfone and ZenWatch On October 28
- Boy Stoned To Death For Alleged Rape, Victim Receives Dowry From Militants
- Verizon Motorola Droid Turbo Leaked Live Images Surfaces, Scheduled To Get Unveiled On Oct 28
- Update HTC One M7 with LG G2 with Android 4.4.2 as Sprint OTA: Fixes and Installation
- Three Dual SIM Samsung Galaxy Note 4 Duos Variants Comes To China
- Russia is Creating Underwater Combat Robots to Protect its Arctic Territories