May 21, 2017 (STLRealEstate.News) Until recently, Asian investors were ultimately unacquainted with the Southern American city of Miami. The reasons for this include lingering misconceptions of the “Miami Vice” era and the absence of direct flights from South Florida to East Asia. However, some key factors are catching Asian investors’ eyes as they look towards the booming tropical haven.
Despite measures by its government to curb capital outflow, China is still dominating the global real estate scene today. When looking at numbers from the last 2-years, investment in Florida real estate by Chinese buyers increased by 1 percent year-over-year from 2015 to 2016, according to the Florida Association of Realtors. “Interest from Chinese buyers and investors continues to grow in South Florida,” said Teresa Kinney of the MIAMI Association of REALTORS. “For the first time in 2016, Chinese buyers ranked in the top tier of foreign purchasers in South Florida. Like other foreign investors, they are attracted to the desirability of the location, profitability of investment, safety, climate, clean air, shopping venues, and our institutions of higher learning.”
China isn’t the only Asian nation that is taking note of the South Florida region. Japan made a $220 million purchase of the iconic Miami Tower earlier this year, one of the region’s biggest investment deals thus far in 2017. Additionally, Asian Pacific Islanders are also becoming more active in the U.S. mortgage market, even though their global activity is still dwarfed in comparison by the likes of Japan and China.
This past April, China’s interest in Florida was definitely solidified when Chinese President Xi Jinping arrived in Boca Raton to meet with President Donald Trump. He visited Mar-a-Lago, and his presence has created a “golden goose” ripple effect – meaning, if the president puts his seal of approval on something, all Chinese investors are likely to follow.