Opinion | Florida remains top US property investment location

The US housing meltdown and subsequent recovery has facilitated the largest transference of wealth in a generation and many international investors from Hong Kong, Mainland China and Taiwan have been the beneficiary.

According to the National Association of Realtors (NAR), the Chinese are the second largest international buyer segment in US, following the Canadians. Chinese investment in American real estate is projected to double again this year as it has in the past three.

The NAR report identifies Florida has the No 1 state for international investment accounting for over 24 per cent of the transactions. Ranked second is California, accounting for 11 per cent of foreign purchases followed by Texas and Arizona.

The factors that have catapulted Florida to the top of the international acquisition list include the steep collapse of prices during the housing crisis juxtaposed against the traditionally strong economic growth of the state. Florida was among the hardest hit areas posting value drops over 70 per cent in many areas and some of the highest foreclosure rates in the country.

In the past year, however, Florida has been among the fastest rebounding property markets. The low supply and high demand imbalance in the state have led to median price increases of 14.1 and 26.3 per cent for single family home and condominiums respectively according to the Florida Realtor Association (FRA).

In the city of Orlando near Walt Disney World, median homes prices have climbed 38 per cent since January 2011 continuing an eighteen month streak of ascending values.