Changes to Australia’s Significant Investor Visa in July this year have apparently resulted in a drop in the number of applications lodged to just seven according to a report in the Financial Times. Are investors heading elsewhere?

In an attempt to stop the flow of funds into the Australian property market, the government’s new rules essentially forced investor funds away from government bonds and the property market into high risk investments.

Some investment analysts have said that the changes to the SIV program would have a deterrent effect on the program with investors likely to shop elsewhere for their visa.

Tana Xuren, managing director of Lodestone Capital, a Melbourne-based financial advisory firm, told The Australian earlier this year that the Chinese who made up more than 90 per cent of all SIV applicants were conservative investors who preferred safe bets rather than high-risk ventures required under the new program.

“Many SIV clients are in their 50s. They have made their money from manufacturing and real estate; they are risk-averse. For some of them, putting money into venture capital is the same as paying fees to the Australian government...They don’t expect to get their money back.”

The Financial Times did not specify the source of its information but quoted a government spokesman saying, “it was too early to tell if the demand for the visas would be different from previous years, as investors may need some time to become familiar with changes."

Note: We have not been able to verify this figure reported by the Financial Times and invite readers to let us know if they have any further information on the interest in the revised SIV program.