Olympics set to bring gold
Beijing's real-estate market will benefit significantly if the city hosts the 2008 Olympic Games, according to Jones Lang LaSalle.
Robert Walker, managing director of the company's Beijing operations, said the lessons from the 2000 Sydney Olympic experience were interesting.
'They suggest there will be profound, long-term effects on the structure of the real-estate markets in the city and significant short-term effects in key sectors,' he said.
'Given the scale and pace of development in Beijing at present, I would expect the impact to be even more significant than in Sydney.'
Sydney's real-estate markets gained from the Olympics with record levels of absorption, low vacancies and increasing rentals in many sectors.
Craig Plumb, Jones Lang LaSalle director of research in Sydney, said that while the city built the largest Olympic stadium, the major benefit was not the new sports facilities but additional investment in transport and telecommunications infrastructure.
He said the direct real-estate implications of housing major events depended on the size and relative maturity of the property market.
The level of impact seemed to be greater on smaller and less mature markets.
'If the previous pattern revealed by our research holds, then the real-estate market in Beijing stands to benefit more than any host city in the past 20 years,' Mr Walker said.