Foreign capital is expected to pour into Beijing's property market as the city's winning of the hosting of the 2008 Olympic Games opens up opportunities for urban redevelopment and infrastructure improvements.
Analysts forecast a gradual improvement in the mainland capital's market to 2008, but the short-term impact from the Olympics hosting might be insignificant.
Alva To Yu-hung, research director of DTZ Debenham Tie Leung, said Beijing's infrastructure and environment would be greatly improved by the government's 180 billion yuan (about HK$168.69 billion) investment. A further investment of more than 100 billion yuan was expected from overseas interests.
Transport links and measures to tackle air pollution, create a green city and upgrade information-technology infrastructure, as proposed in Beijing's Olympic application, would improve its international image and step up urbanisation, Mr To said. These also would help attract foreign firms.
The hosting also provided opportunities for foreign companies to participate, such as in the construction of the Olympic village with flats for sale after the event, redevelopment projects and hotel developments, Mr To said.
He expected the hotel sector to be the first to benefit from the Olympics, followed by the office and residential sectors.
