According to BasisPoint Consulting, 171 applications have been lodged so far, with more than 400 expressions of interest (EOI) in the pipeline.
The figures suggest the SIV scheme is likely to see 1,000-1,500 applications before the end of the 2014 financial year, which would see it reach the projected $5 billion of capital inflows.
“EOI is one stage before the formal application, so if you add those two numbers we’re looking at nearly 600 investors since, say, February,” BasisPoint managing director David Chin told InvestorDaily.
“In terms of demand, it still puts that 1,000 visas per year as a realistic expectation.
“That is $5 billion in capital, which is quite significant. It’s about one sixth of the entire net contribution inflows for the superfund industry and about half of the Australian initial public offerings (IPOs) last financial year.”
BasisPoint Consulting said that 90 per cent of EOI have been from China and 47 per cent of applicants are looking to reside in NSW.
Of the more than 400 EOI, 90 per cent stated an intention to invest in Australian government bonds, with around 70 per cent looking to stay in the asset class and 30 per cent considering other options.
“It wouldn’t really make sense for them to investigate now on what to invest because it will be six to nine months before they actually get the approval,” Mr Chin said.
“So I would say they tick the bonds box because it’s easiest for them to invest in and after they get the visa they’ll do the due diligence on one of the other opportunities.
“They’re not in any rush to invest; once they’ve invested in bonds, they’ve got a four-year period to look at other markets.”
Mr Chin said the approvals for the 171 applications were likely to be announced from September this year.
