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Games let down hopeful landlords
China Daily
Updated: 2008-08-17 08:59
While heralding excitement and success for many, the Beijing Olympic Games has mostly been a letdown for the capital's landlords seeking to cash in on the tourist influx.
Real estate agencies said actual short-term rents had generally been lower than those expected by property owners, who raised rents more than fourfold.
Real estate agency Golden Key's marketing department said only 8,000, or 40 percent, of the 20,000 apartments put up for short-term rental in August had been leased.
Most contracts were signed for high-end apartments with normal monthly rental rates of more than 5,000 yuan, more than triple the average rent in the city.
Despite the lower-than-expected number of leases in August, media reports said the drive to make money during the Games would raise rents in the long-term.
Average monthly rents in Beijing rose at their fastest-ever rate in the first half of 2008.
Rates increased by 15.6 percent from 1,350 to 1,560 yuan during the first six months of this year, surveys cited by China Business Times showed.
While short-term rents are expected to drop after the Games, long-term rents may rise, as owners of apartments available for short-term rent seek to retrieve their losses in the long-term rental market, analysts said.
It is estimated their monthly rental quotations would increase by about 3 percent, or 100 to 200 yuan.
Xinhua
