Olympics lease investment booms

The Olympic Games is not only boosting tourism in Beijing, the city's real estate market will also likely benefit from the influx of visitors. With five months to go, many Beijing residents are preparing to offer their houses for rent, during the Olympics.

The Beijing tourism authority predicts that over 3.5 million travellers both domestic and overseas will visit Beijing during the 2008 Olympics. And the booming tourism market is also promoting Beijing's house renting industry.

Insiders predict that rent during the Games will be ten times the usual amount. Some Beijing residents are buying new units for to offer for rent during the Olympics. Some are decorating their own houses for short term renting.

One house owner said "I've bought a new unit. When I heard that the rent during the Olympics will be ten times the regular amount, I decided to rent out the apartment on a monthly basis from now on until the Games is over. I believe this will increase the whole year's rent profits."

But experts are reminding those interested that the quote of ten times the regular amount is compared with the daily rent. If house owners can't guarantee their unit will be leased during the entire Olympics, it's very hard for them to receive their expected profits. Experts also say house owners should consider the actual stay of tourists when calculating the profits.

Jin Yusong, Vice GM of Home Link Ltd. said "If you only rent the unit for three days during the Olympic Games, even if the rent is ten times, the overall profit during the whole month is in fact the same as usual. What's more, your house may be empty for months due to the short term renting. As a result, you might even lose out in the end."

Meanwhile, experts also say tourists who want to rent houses in Beijing during the Olympic Games should rent as soon as possible, as there are more choices and prices may be relatively cheaper. They can also find roommates to co-rent a unit so as to enjoy cheaper rent.