Josh Cunningham, vice president, head of sales – Americas, Investorist

Josh Cunnningham is the vice president and head of sales for the Americas for Investorist, an online property network and management platform, working out of Miami. In our discussion, he remarks on the growing interest Chinese buyers have in the U.S. market, and how agents, particularly in Miami, can capitalize on it. 

Miami Agent (MA): How can real estate agents better position themselves to capitalize on Chinese interest in the U.S. market?

Josh Cunningham (JC): If agents want to capitalize on the Chinese market, they need to start building relationships now. Forget sending the Hail Mary sales email and hoping it delivers. The Chinese place extreme value on building relationships and building trust. As an agent trying to woo the Chinese, you need to be having regular web chats, commit to flying to their offices in China, meeting the company principals face to face and seeing their operation, flying them to the U.S. and more. I hear agents say, “I don’t know if I want to fly to China. I don’t know if it will bring results.” Statistics show that the U.S. companies that are investing their time into building relationships in China are getting direct results from their investment, and usually in a big way. Chinese buyers have been, for the fourth year in a row now, the top foreign purchasers of property in the U.S. with home sales valued at over $27 billion! There is obviously huge demand from China, but agents need to be willing to work hard to create and strengthen the relationships. Once you have invested in doing that, as we’ve proven at Investorist over several years now, the rewards will definitely come.

MA: Is Chinese interest in U.S. real estate only a result of China’s economic problems? Will that foreign money leave once the China’s economy rebounds?

JC: Historic instability has driven the flow of funds from China to the relative safe haven of U.S. real estate. When the stock market crashed in China, everyone initially thought that it was going to decrease the money flowing out from China. Instead, it actually propelled the outflow of investment and now more people in China than ever are purchasing property in the U.S.

The continued strengthening of the Chinese economy only serves to increase the number of wealthy Chinese who are in a position to invest offshore as well as the levels to which they can invest.

This coupled with the rising price of real estate in major Chinese cities and increasing government regulations as to who can buy property there, we see U.S. property investment as a trend that will only continue, despite the vagaries of the Chinese economy.

MA: Why is Chinese interest so focused in the Miami and New York markets? Does it have anything to do with those two markets also being the most watched for money laundering?

JC: Chinese buyers are extremely interested in the U.S. property market because of the stable dollar, world-renowned schools, strong government and the opportunity to grow business. Chinese buyers, like many international buyers are heavily influenced by their peers and often will purchase multiple properties as a community, friendship or family group. New York is already benefiting from Chinese investment, but we are starting to see an increasing number investing in Miami as well.  With only 2 percent of foreign buyers in Miami coming from China, now is the time to start building those relationships because the influx of Chinese money coming in is inevitable. Miami is one of the best destinations in the world. It has amazing weather, perfect beaches, great schooling and world-renowned shopping, restaurants and golf courses nearby; all obvious advantages for those planning to live and/or invest here. Miami also offers a unique opportunity, being the gateway to South America, where a lot of Chinese have trade and business agreements.

The beginning of the investment wave is usually when Chinese developers start to purchase land parcels to develop, which is exactly what is starting to happen in Miami. CCCHG (China City Construction Holdings Group) is poised to start developing projects in Miami’s Brickell area.

A growing awareness of the benefits of buying in Miami through the education of Chinese buyers via media, seminars, events and other activities is only going to increase the city’s appeal.