In recent years, Miami experienced a real estate boom which pulled the prices of luxury condo homes up. This was attributed largely to wealthy buyers from Brazil, Venezuela and Argentina. Now, Miami developers and real estate agents are targeting a different country: China.
In April, representatives from several Miami condo properties joined the Beijing Luxury Property Show in China. The trade show is an event that attracted more than 5,200 wealthy Chinese buyers to look at international properties, reports the Wall Street Journal (WSJ). Miami developers and sales agents who participated in the event included OneWorld Properties, Fendi Chateau Residences, Palazzo Del Sol and the forthcoming Palazzo Della Luna.
Even executives of the Miami Association of Realtors, the largest local group of the National Association of Realtors, went to the Beijing show, handing out Miami market data and cards with gold palm-tree pins attached to it. The card featured a tagline, written in Chinese, "Enjoy the unique taste of life." Lauren Marks, marketing coordinator for Palazzo Del Sol and Palazzo Della Luna, also revealed that she was on a fact finding mission while in China. "I'm trying to decide if this is the right place for us to facilitate a meaningful relationship with Chinese buyers," said Marks.
Previously, South American buyers comprised the largest foreign buying group in Miami. Unfortunately, these buyers are not purchasing properties as fast as before. According to a study by the Miami Downtown Development Authority, sales of new condo units under construction have slowed, partly because the lesser buying power of South American investors. This is due to the increase of the U.S. dollar compared with South American currencies, reports WSJ.
Meanwhile, Chinese home buyers are beginning to take interest in Miami. Simon Henry, co-founder of Juwai.com, a China-based website that connects wealthy Chinese with overseas properties, said that Miami looks "relatively cheap" if compared against big cities like San Francisco and New York. Henry further added that a Chinese buyer's average budget for overseas properties on its site is $2.3 million.
Chinese home buyers have also topped the list of foreign purchasers in the U.S., by both sales and dollar volume, reports Bloomberg. According to a report released by the National Association of Realtors in June, Chinese buyers spent $28.6 billion on U.S. homes and made up 16 percent of transactions by foreigners in the 12 months through March. The Chinese have surpassed Canadians, who previously led international purchases since 2008.
Now, Canadians are ranked second with $11.2 billion in spending and 14 percent share of sales. On the third spot are Indians who had a $7.9 billion spending, followed by Mexicans with $4.9 billion and Britons at $3.8 billion.
