The Olympics and the Real Estate Industry in China

Published by julia | Filed under Market Trends, Miscellaneous, Real Estate, Shout Outs

Fortunes come to hosts of the Olympic Games. That is the reason why China has particularly been active to pursue its goal of hosting the games. Beijing knew that if it could secure the rights to stage the game in 2008, it will underpin and seize more opportunities. In this time when the Chinese economy is quickly gaining pace, the 2008 Olympics is formally highlighting the strength of the mainland.

The Chinese real estate market is mostly benefiting from the Olympics. 2008 has been a remarkable year as far as the Chinese property market is concerned. Analysts and experts assert that the games is a significant catalyst to the property boom in the country. It is estimated that in the first half of the year, about 70% of property construction globally is in the Chinese soil. This is not surprising given the fact that construction for the Olympics arena alone has taken significant toll on the figure. China has really spent billions of dollars for the games and for further development of its property features.

The Chinese government’s National Development and Reform Commission has reported that home prices in Beijing and in other major cities across the mainland had grown by about 9.2% in the April to June quarter compared to year-ago growth. Notably, 80% of sold Chinese houses are purchased entirely with cash, an indication that per capita income is high as buyers have more cash to allot and spend for such investments. As for the rate of savings per household, the figure is healthy at 25%, becoming more promising and opportunistic for the local property market.

Indeed, there is a reason why China’s real estate and housing industry is set apart from that in the US, where prices are falling. While in other developed countries, home prices and declining, it is a different story in China, especially these days as the Olympics caught the world’s attention and focused it to the country.

It is expected that after the Olympic Games, the real estate market in the country will bloom more. That is because after the event, people from all over the world will surely be impressed with the vacation spots and destinations in the mainland. Events like the Olympics and Miss Universe are considered Midas of the real estate sector. Every where such important global events are held, tourism and real estate are heavily promoted. Thus, it is not surprising why it is always a lifetime goal of every country and city to host the Olympics.

China is surely using the games as another stepping stone so that it could further achieve its goals and targets. After the Olympics, China will surely emerge triumphant. From then on, it is forecast that property industry will all the more blossom and bloom. The scent of Chinese victory is just irresistible. The 2008 Olympic Games will be staged in August 2008 and will be beamed all over the world, exposing the beauty and promising appeal of Chinese real estate further.