The Chinese share of the South Florida real estate market is expected to grow as Chinese investment in U.S. real estate is expected to reach $50 billion by 2025. Wealthy Chinese buyers are the top foreign buyers in the U.S. real estate market after spending over $27 billion over th past four years. Despite this, Chinese buyers represent only 2% of foreign home sales in Miami, trailing countries such as Brazil and Colombia. Miami is an attractive market for the Chinese as it is much more affordable than New York and San Francisco. They are also drawn by the stable and rising rental income in addition to the appreciation potential. Local brokers are already reporting an uptick in interest from Chinese buyers as both ISG and Cervera Real Estate have signed partnerships with Homelink International, which is one of the largest brokerages in China. Both CMC Group and OneWorld Properties have been marketing their Brickell Flatiron and Paramount Projects to Chinese buyers respectively. Additionally there has been a major push from the Great Miami Chamber of Commerce's Asia Task Force to approve nonstop flights between Miami and China. With the major push towards bringing Chinese real estate investors underway, look for an uptick in Chinese investment in South Florida to continue to grow and help pick up the slack left behind in the wake of unstable South American governments. Learn how Miami developers and agents are looking to China to boost sales from our September report.
Miami Developers & Agents Look to China to Spur Sales
As the Miami real estate market looks for a more diversified group of buyers, agents and developers are focusing on China as a new revenue stream where investment has historically been weak. Factors effecting this are Miami's new emergence on the world stage as a world class city to invest in, but also due to proximity and the fact that there are no direct flights between Miami and China. The Miami Herald reported in August that 20 of the top Chinese real estate brokers came to Miami to tour some of the top new projects. They are attracted by the affordability of the properties and value compared to other U.S. markets.
Only 2% of the home sales to international buyers in South Florida last year were to Chinese buyers. Despite this, during that same period Chinese investors spent $27.3 billion across other U.S. markets. Chinese investment has played a major roll in the continuously changing landscapes of New York and San Francisco real estate. China City Construction Co., a Chinese government owned developer, has purchased over $110 million of land in Brickell and Miami Beach. Additionally, Cathay Pacific Airways Ltd. is looking into a larger plane for long-haul flights between Hong Kong and Miami. Officials at Miami International Airport said that the flight could become a reality in the next 2 years.