More growth is expected for South Florida as Chinese investment in the United States real estate market is expected to reach $50B by 2025. According to the Real Deal, wealthy Chinese buyers have been buying so many homes in the United States that they are the top foreign country purchasing property in the United States – for the fourth year in a row. The article noted that home sales totaled more than $27 billion.
South Florida is really pushing for such buyers to its commercial real estate market. According to Daily Business Review, tapping into the Chinese market, home to the world’s second largest economy, has been a longstanding item on Miami’s real estate wish list. In the race to secure a Miami-China connection, local brokerage houses have deployed marketing trips abroad, hired Chinese-speaking agents and sought partnerships with China-based companies.
The Miami Association of Realtors is bullish about bringing Chinese buyers to South Florida, and now has a new partnership that it says will put Miami properties on the screens of thousands of prospective buyers. According to The Real Deal, the Miami Association of Realtors association partnered with Juwai, which it says is China’s Number 1 website for international property searches, according to a press release.
The allocation of household wealth in China looks a little like this: 46% bank deposits, 39% housing, and just 10-15% in financial assets, including stocks. Chinese investors tend to have a strong preference for putting their money in housing, coupled by a far weaker interest in other forms of investing, Forbes wrote in a recent article. According to China’s National Bureau of Statistics, 90% of families in the country own their own home, while Nomura estimates that roughly 21% of China’s urban households now own more than one house, with some cities supposedly boasting 200% home ownership rates.