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The latest drop in China’s stock market is sparking speculation that another surge in international property sales is on the horizon. The volatility in the markets will spark Chinese investors to seek alternative, secure assets outside the country, the theory goes.

It makes sense. Chinese are already diving deeply into foreign real estate. They are the biggest buyers of property in the United States, spending $28.6 billion on U.S. real estate in 2014, compared to $11.2 billion from the second-largest group, Canada, according to the National Association of Realtor. In steady and deliberate fashion, China has been increasing its development and construction interests throughout the Americas.

Is Panama real estate next? Several factors suggest Panama City is due for a jump in Chinese buyers. For one, there is already an array of Chinese companies based in Panama, with a wide variety of investments in the country. With fastest growing economy in the region, Panama’s economy is anchored by the Panama Canal, the type of steady, reliable driver of international trade essential for Chinese investors, who are known to follow a long-term strategy.

Panama City real estate has several attributes prized by Chinese investors. It’s a stable market, with fundamental economic drivers and a steady rental market. The bulk of China’s investment has been in high-end property and Panama City has the most luxurious residential market in Latin America.

There is also a sense that Panama City is undervalued, compared to Miami, the Caribbean and other competing markets. Chinese real estate investors are famed for taking a smart, competitive approach to investing, which is why the United States has been a favored destination.

“My conclusion on China is that those who are buying U.S. real estate are doing it with a very long-term view—to diversify their assets, provide a safe haven in case something happens at home,” consultant John Burns told CNBC for a recent report.

But U.S. real estate is no longer a bargain. In Miami, one of Panama City’s direct competitors, prices are up more than 20 percent in the last year and there is discussion of a new bubble, in the wake of a slowdown in Latin American buyers.

Chinese are known as savvy buyers, who examine all the factors before making a purchase. As they research the different markets, Panama City is going to start to look very attractive.

Duncan McGowan is president of Punta Pacifica Realty, a Panama real estate agency focused on Punta Pacifica, the exclusive neighborhood of 18 towers perched on the edge of the Pacific Ocean.