Discussions are taking place on what the 2008 Olympics will mean to the host city, Beijing. It will doubtless bring Beijing great one -- off revenue and providing massive employment in the lead-up, but officials warned Wednesday that an Olympic "bubble" economy may develop.
According to official sources, the prices of commercial real estate in Sydney rose strongly in the years following the successful bid in 1993. However, the commercial real estate sector remained stagnant for some time after the year 2000 Olympic Games.
It's the same case in Seoul. As the Games drew to an end, housing prices fell remarkably.
He Zhenliang, executive member of International Olympic Committee, said: "As Beijing gets ready for the Olympics, the real estate sector will surely be a major driver of the city's economic growth. But we have to keep the development speed under control, and avoid overheating the economy."
As the year 2008 draws near, large-scale construction is about to start. Domestic real estate traders have long been eyeing the potentially high-growth market. Industry insiders have warned investors to act cautiously because careless investment is likely to result in an excess of supply. An excess will cost investors dearly, impacting on the returns they are able to get back from their real estate.
(CCTV January 16, 2003)
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