Could you think New Cooperation with China Affect Florida Real Estate?
On April 6th and 7th, President Donald Trump met with Chinese President Xi Jinping. During the historic meeting, Trump and Jinping discussed trade and relationships between the two countries. National press reported that Trump raised his concerns about trade practices in China. He also discussed the escalating tension in the Middle East and on the Korean peninsula.
In the meeting that took place at the Palm Beach Mar-a-Lago resort, no major deals technically went through. However, real estate experts have high hopes for the long-term results of the talks.
Jinping said, in a statement to the Foreign Ministry of China website, that the two countries must promote a “healthy development of bilateral trade and investment…We have a thousand reasons to get China-U.S. relations right, and not one reason to spoil the China-U.S. relationship.”
Before the meeting took place, real estate experts across Florida expressed their desire for positive relations between the two countries. A report from The Real Deal showed that partners in real estate firms across South Florida were hoping for better real estate opportunities overseas. This would be possible with good relations.
One real estate professional told The Real Deal that “it is in our economic interest that there not be any breakdown in trading and doing business with China…You would hope that a strong trading alliance, no restrictions on travel and limited currency controls on China’s part come out of these talks.”
Will China-U.S. Talks Change Anything?
Talks between China and America appear largely positive so far, though overshadowed by talks of military intervention in North Korea. China is reportedly threatening to stop exporting oil to North Korea if the country doesn’t cease its nuclear weapons testing. This comes after Trump stressed the importance of cooperation over the Korean conflict.
When it comes to real action on trade, however, many real estate professionals throughout Florida are relying on continued cooperation between the countries. This is in order to allow more foreign investment in the region. This means that more properties can be built and sold, contributing to the Floridian economy. However, for the average home buyer, it’s unclear how new relationships (or indeed, continued relationships) with China could affect the promise of a sale. The current demand for properties in the United States is surprisingly high, while supply is low. Continued investment from China could potentially see new homes hitting the market. Nevertheless, with such a heavy investment in commercial properties like offices and hotels, this is only mere speculation at this point.