Economy

Markets

Industries

Insights

Reports

Events

Beijing rents ride Olympic wave

By Hu Yuanyuan (China Daily)
Updated: 2008-06-26 09:32

Li Xiao, a 29-year-old company executive, is apartment hunting. "My monthly rent will rise eight-fold by August, from the current 3,200 yuan ($465.93) to 25,600 yuan, far beyond my budget," Li complained, adding some of his colleagues living around the major stadiums that will host the Olympic Games are also facing similar problems.

Li, who used to live in a 90 sq m apartment along Beijing's north fourth ring road, had a perfect view of the Bird's Nest.

"My landlord informed me about the new rent in March. I had never imagined it would be that high," Li said.

Statistics from Beijing Tourism Bureau show that over 3.5 million people, including domestic and international tourists, are expected to come to Beijing from August 8 to 24. The Beijing Organizing Committee of the Games of the 29th Olympiad has booked some 95 percent of high-end hotels near the major stadiums.

Such a huge demand and short supply of suitable accommodation has been pumping up the rents. Most apartment owners around the Games stadiums are not willing to have long-term tenants. Homelink statistics show 71.5 percent of them would accept a contract that ends by June.

Wang Liang, a 32-year-old official, bought a 54 sq m apartment along the west fourth ring road last year. But ever since he finished redecorating his home in November, he has refused many long-term tenants, accepting, instead, short-term lessees.

"I've heard about the possibility of rents going through the roof during the Games, so I have tried to rent out my apartment on a monthly basis so that it's available in August," said Wang.

He said he expects the August rent to jump at least six times as his apartment is only 15 minutes drive from Wukesong Stadium.

But industry experts said Beijing apartment owners should not get their hopes too high. Some 80 percent of the tourists are likely to pick hotels as their first choice and only the rest 20 percent would go for short-term rent of family hotels.

Besides, most overseas tenants are quite demanding when it comes to decoration, furniture and the general environment of apartments.

Ding Mei, who has an apartment that's only 5 minutes drive from the National Stadium, faces a similar dilemma.

After contacting a real estate brokerage company to put out her apartment for lease earlier this year, she did receive some inquires. Some of them, usually foreigners, would like a long-term contract for a monthly rent of over 5,000 yuan, but asked her to put in new furniture and remodel the apartment to their liking. Since Ding wouldn't go through all that trouble, she hasn't found any tenants so far.

Jin Yusong, general manager of Homelink (Beijing), offers these tips for those looking for accommodation during the Games: Move early; go for lower rent; never underestimate the importance of signing contracts, even for a 16-day stay; choose an apartment not close to stadiums but along the subway line.