After analyzing investments made by its citizens in recent years, the Chinese government declared the buying behavior of their citizens within the U.S. market to be “irrational,” and therefore instituted regulations to curb it. Despite a large decrease nationally, with much of the reduction of Chinese investment felt in Los Angeles, Miami’s residential market has largely been spared the reduction stemming from these regulations. The same cannot be said for the effect on Miami’s commercial market, where the affect had been more substantial.
Given that these regulations have been renewed for 2018 and could possibly continue indefinitely, it’s uncertain how this will affect markets in South Florida over the long term. What is certain is that foreign investments as a whole are crucial to the success of our communities, a topic that Ross Milroy has extensive knowledge of and provides tips for those looking to make foreign real estate investments. The State of Florida is the top U.S. destination for foreign buyers (approx. 22% of all sales nationally) and about half of those sales happen in South Florida. Coming in at about 3% of all total foreign investments, sales from China represent a small portion compared to the top 5 countries for foreign investors, which include: Argentina, Venezuela, Canada, Colombia and Brazil (64 percent combined).
Experts understand the important role that foreign investors play in selling out the vast amount of new construction projects and bringing in much needed tax revenue. For better or worse, it is also these foreign investor owned units that feed the ample condo rental market providing housing for local residents. Further, it’s interesting to note that during 2017, when surveyed by the National Association of Realtors, 54% of them had only visited Florida two times or less prior to buying and 5% of them had never visited