Chinese Investors are in Love with Miami.
Miami is a city that appeals to Chinese investors. It’s viewed as a global city and as a great investment. Caroline Li Griffith, a private real estate investor from Zhenjiang offers her insight on why Miami appeals to Chinese investors. “As a real estate investment, Miami has much lower price points than Shanghai and Beijing which is very attractive.”
Griffith, having just purchased her third luxury condo in Miami, is a bit of a self-proclaimed expert. She divides her time between Miami and New York. The laid-back atmosphere, friendly people, and beautiful weather in Miami had her falling in love. Griffith prefers buying her condo units in their pre-construction phases. She explains, “When I buy pre-construction, I can pay in installments before completion which is also attractive.” Her most recent purchases were located in the Paramount Miami Worldcenter. Prices for one-bedroom units begin around $800,000 and two-bedroom units just over $1,000,000. Completion on her units isn’t expected until 2019, but Griffith is looking forward to the financial benefits those condos will bring.
Miami condos offer more than just comfortable living. Griffith purchases condos not only for her own enjoyment, but also because of the attraction to world travelers who are looking for more than a hotel. “I like condos for investment because they are easier to manage.” She has options to explore though, as she is debating on renting one of the units to her mother who currently resides in Argentina, or keeping it for herself as a second home.
Miami is a hub for foreign money, especially coming from Latin America. The cash flow appeals to Chinese investors. Expert William Hardin, PhD (Professor of Finance and Real Estate at Florida International University in Miami) explains why Miami is so appealing to purchases, both foreign and domestic, “Miami is being developed as a product for people who want to own high quality real estate at a certain price point. Developers here have been very successful with that and it’s got what today’s investors from China want.”
Hardin continues on, “The wealth created in China is staggering. Real estate investment in the United States especially in a booming and fast growing metropolitan city like Miami represents little economic risk to them. They see real estate here as discounted. If this level of luxury product even exists in Beijing or Shanghai, the prices can easily be three to four times more. It’s a lifestyle for the Chinese and other foreign investors which is really a consumable investment where they can take a return and get their money out.”
Some companies such as One World Properties, are creating real estate services focused on primarily selling Miami property to Chinese investors in Shanghai. Peggy Fucci, CEO of One World Properties elaborates on this “There is so much business coming from China that I felt I needed to establish a strong presence there. I found traveling a few times a year isn’t the same as having a permanent office.”
Fucci an expert, having been in the real estate field for several years states her clients typically purchase two properties. Similar to Caroline Li Griffith they plan to use one of the properties as an investment and the other as a personal property.
“Miami has long been an international city appealing to a mainly South American market. I’ve seen the demographics change over the last five years. The Chinese now rank as our third top buyer. With all our luxury amenities including; shopping, dining and entertainment they see Miami as the Hong Kong of the West,” Fucci explains.
Miami will continue to draw international investors.