National Association of Home Builders’ director of economic services says, “For the first time since World War II, I think [foreign] people are more optimistic about the US housing market than Americans.”
Wall St Journal reports that the successful Sekisui House Ltd, a very large home builder and developer in Japan, is seeking to enter the US housing market and has teamed up with Newland Real Estate Group LLC of San Diego to acquire nearly 500 acres outside Houston which could house more than 1 200 homes. Local brokers said the price was most likely over $10MM.
It is anticipated that it will take three years to plot the development and get the project through the approvals process.
Foreigners are not afraid of the US market as evidenced by the fact that 262 of the a Miami luxury condo’s 372 units have sold and almost 90% of the buyers are foreigners, all paying cash. It includes a 28,000 sq ft spa and infinity pool on Biscayne Bay. Units that once sold for up to $670/sq ft now average $319. Hotel-like service is offered, condos are glamorously appointed, great water views abound, daily housekeeping included and a celebrity chef offers room service. It appears that foreign investors are buying real estate rather than investing in the US stock market, planning to rent out properties and sell when the economy turns around. It is reported that 80% of all current Miami condo sales are with foreigners. A property management cottage industry has sprung up across the US to accommodate these foreign buyers.
Locally, The Related Group has held many seminars, e.g. at Robb & Stucky in Boca and at the Boca Marriott, in the past few weeks showcasing their Ft Myers condo complex they purchased at a distress sale and are now offering at very low prices. Seminars are also being held for condo complexes in foreign cities, and it is reported that buyers are astonished at the values, wondering if they are too good to be true. They ARE true.
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