Olympics disappoint Beijing landlords

August 16th, 2008 - 3:07 pm ICT by IANS  

Xinhua
Beijing, Aug 16 (Xinhua) The ongoing Beijing Olympics have brought excitement and success to many, but for landlords in the Chinese capital who had hoped to reap a small fortune from the tourists, the Games have turned out to be a big disappointment. Real estate agencies said the actual deal prices for short-term renting is generally lower than what the owners had expected, who raised their rental 4.6 times over the normal rate.

According to real estate agency Golden Key (Zhongda Hengji), more than 20,000 apartments had been advertised for short-term renting, but barely 8,000 of them - about 40 percent - were leased out.

Contracts were signed largely for high-end apartments with monthly rental of 5,000 yuan ($727) or above, which more than tripled the average rent rate in the city.

Though deals are limited, the urge to make money during the Games pushed real estate prices even in the long-term renting market.

The first half of 2008 has seen the fastest growth of average monthly rental rate in the city, from 1,350 to 1,560 yuan, up 15.6 percent, according to surveys quoted by China Business Times.

Though the short-term rental prices will drop after the Olympic Games, the long-term rental may rise higher, as the owners of the short-term renting apartments would seek to make up for their losses in the long-term renting market, analysts said.
Xinhua

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