The ultimate recovery for the South Florida real estate market may end up coming in the form of entrepreneurs from the east. Chinese investors have been extremely active in the South Florida area, taking advantage of prices that are still relatively low due to the market crash in 2008.
Increasingly, the Chinese have passed on cities where real estate prices have made a stronger recovery due to the great deals on the sunny shores of South Florida. This trend, which has been unique to this particular real estate cycle, has created the opportunity for many brokers to create strong and lasting relationships with Chinese investors.
Our very own Fabio Faerman has forged some of these relationships himself. Faerman claims that the Chinese tend to be very meticulous when searching for property, making sure to invest their funds with extreme care.
Faerman represented FX South Miami, led by Jeffrey and Corey Chen, in their acquisition of a $5 million development site in Brickell during late 2011. Faerman claims that somewhere around 70 percent of Chinese investors that he has worked with have no plans to rent out the properties they purchase, instead using them as a part-time residence or as homes for their young-adult kids.
Given that the real estate market is in the process of recovery, it is important for buyers to come from any and all markets. Investments such as these make the South Florida area the ultimate melting pot in the United States. Whatever the cause, rent or part-time residence, the South Florida markets appreciate the investment from the east.