This recent article by Jesse Ottley of Miami Herald, explains why Miami’s location and lifestyle may be rapidly attracting buyers from China compared to other traditional U.S. spots. Learn more about Miami’s appeal and what the key motivators are for Chinese buyers.
What interests today’s Chinese buyer?
Globally diversifying their investments while seeking better yields in underpriced markets is a key motivator for Chinese buyers. Aforementioned gateway markets have become oversaturated, making elevated returns difficult to achieve. Simply put, Miami offers much lower prices than the traditional U.S. hot spots for Chinese buyers. For example, $1 million USD buys you 828 square feet in Miami, compared to 700 square feet in Los Angeles and 290 square feet in New York.
Education, emigration, and lifestyle also ranked as high priorities for these buyers, according to a 2016 report by the National Association of Realtors. High net-worth Chinese may also view overseas real estate as a means to provide international opportunities for their children and a safe haven from political and economic uncertainty in China. Similarly, real estate investment and ownership can potentially offer an expedited path to Chinese families who want U.S. residency for work and educational opportunities.
Poised for rapid growth
Miami, with its advantageous geographic location, infrastructure, access to trade, technology, communications, tropical lifestyle, thriving financial center and gateway status to the Americas, makes it an obvious choice for Chinese individuals and investment groups. The one missing link? Direct flights to and from Miami and the Chinese mainland.
However, many signs suggest that direct flights are in sight. The Miami Herald reported earlier this year that officials at Miami International Airport have said they hope to land a regular direct flight from Cathay Pacific or another airline within the next 24 months.
Over the past 18 months, executives from our brokerage firm Cervera Real Estate have participated on various trade missions to Beijing, Shanghai and other key cities, in an effort to forge ties with government and business officials and lobby direct flights. We predict the announcement of a direct flight from Guangzhou to Miami by a major Chinese airline before the third quarter of next year.
The City of Miami has also made significant strides in forging a relationship with China and the Far East. Over the past two years, slow but steady progress led by forward-thinking individuals and organizations have laid the foundation for rapid growth. Among those, the Asian Real Estate Association of America established its Greater Miami chapter in September 2015. Since then it has become the fastest-growing chapter in AREAA. In another encouraging sign, Miami was selected as the host city for AREAA’s 2017 Global Luxury Summit, a three-day conference that brings together representatives from chapters around the U.S. to discuss best practices for the local and global Asian community.
New distribution channels for brokers and real estate professionals looking to do business with the Far East have also opened. Investorist, an Australian-based startup described as a “global MLX,” chose Miami as the home for its first U.S.-based operation. It is currently China’s most popular paid brokerage platform. The Miami Association of Realtors established a partnership with Chinese web portal Juwai.com, making additional resources available.
[Read the full article here]