The cash is coming from overseas where the funds must be invested in SOMETHING. Or the money will be lost forever if it stays where it is.
That's French for Chinese investors.
The brokerage industry is savvy in marketing large properties using slick brochures and lots of pro-formas. The buyers don't know who else to look to.
In the land of the blind, the one-eyed man is king.
Don't forget the crowdfunding folks. Many of those investors have no clue, they just trust their advisors/salespeople.
These 2% cap buyers are just stockpiling our future investments when they go bust.
I agree with Brandon@Sandell
Its speculation, pure and simple.