Chinese Real Estate Buyers Expected to Rise in South Florida

Coral Gables luxury homes

The MIAMI Association of REALTORS® made an appearance at the LPS Shanghai 2015 event which showcases the top luxury real estate markets from around the world. As a major real estate event, this year’s show brought in more than 5,000 affluent real estate investors and buyers from China as well as interested real estate buyers from around the globe.

This is why the MIAMI Association of REALTORS® secure a spot at the event, as it has done over the past few years with the goal of helping its 41,000-plus members better advertise their South Florida real estate properties to the Chinese market.

South Florida Real Estate Market Appeal

The MIAMI Association of REALTORS® South Florida real estate, like Coral Gables luxury homes, are one of the areas that are garnering the attention of the Asian market.

Miami’s world-famous lifestyle and expansive designer shopping along with its beautiful weather, walkable districts and top-tier higher learning institutes are attracting high-end buyers from Asia, like China to invest in the South Florida real estate market.

One of the fastest growing segments in the South Florida foreign buyers’ market is China. According to the MIAMI Association of REALTORS®, China’s interest in Coral Gables luxury homes and properties in the surrounding counties is expected to increase due to the area’s diversified economy and secure investments.

Chinese Buyers Prefer Miami Area

The National Association of REALTORS® (NAR®) released its 2015 Profile of International Home Buyers. When it comes to the Florida real estate market, Chinese buyers prefer the Miami-Miami Beach area as its top Florida destination.

According to the NAR® report, approximately 42 percent of Chinese consumers buying real estate property in Florida purchased properties in the Miami and the Miami Beach communities. The second most popular real estate region in the Sunshine State was the Bradenton-Sarasota-Venice area with 27 percent of China foreign buyers closing on properties.

The average Florida purchase price secured by Chinese buyers in 2015 was $1.065 million. The 2015 Profile of International Home Buyers in Florida report pinpointed this price as the highest among all foreign home buyers. In comparison, the average purchase price paid by foreign buyers was $538,600 in Florida. Although this number doesn’t come near the average of Chinese real estate buyers, it is higher than the $258,200 mean home price for domestic clients.

Chinese buyers comprised 16 percent of international buyers who purchased single-family homes and condos in the 12-month period ending in March, up from 12 percent in 2013.

Chinese buyers represented 2 percent of all international closed sales in Miami-Dade and Broward Counties in 2014. That’s a 50 percent increase from 2012 and 2011 when China comprised 1 percent of transactions.

A 2014 study on the Asian community found that this minority group topped the numbers in the largest share of purchase money mortgages in both monetary value and number. The Asian Real Estate Association of America predicts by 2024 the population of Asian households formed in the U.S. will increase by 1.8 million.

As a top destination for foreign buyers everywhere, South Florida continues to lure in countries, including China. Don’t be surprised if Coral Gables luxury homes become the number one spot in the country for other Asian foreign buyers as well. Time will tell.

Florida Realty News
Florida Realty News
Berkshire Hathaway HomeServices Florida Realty, a wholly-owned subsidiary of WCI Communities, has over 39 locations and more than 1,650 real estate sales professionals and team members serving 17 counties throughout Florida.
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