With the Olympics approaching, the price of short-term Olympic rental apartments is not rising but falling sharply. Reductions may be as much as 50 percent, and even these are negotiable according to several rental agencies and classified advertising websites.
Since the end of last year, many residents around the Bird's Nest have been preparing their spare property for short-term rental during the Olympics. On www.5i5j.com, the website of a well-known letting agency, it is reported that a number of customers let their apartments for rental during the Olympics at the end of last year. At the start of the year, an apartment of less than 110m2 in the community of Vanke Stars Garden, not far from the Olympic Forest Park, was fetching around 28,000 yuan for the month of August. Such apartments are currently available at around 8,000 yuan, and even at this price they are struggling to find takers. According to www.5i5j.com, the drop in price is due to oversupply and a preference for hotel accommodation.
Information on www.58.com suggests that earlier this year a two-bedroom apartment of less than 60m2 near the Bird's Nest was fetching 20-30,000 yuan for the month of August. On some rental contracts prices were even being calculated per day. Residential buildings around Beishatan, close to the Olympic Village, were thought to be worth US$100 to US$300 a day. Now the prices of these apartments have fallen by half.
The website of www.58.com still carries a number of new short-term rental adverts. One offers "a 70m2 apartment for short-term rent, close to the Bird's Nest in the Olympic Village, at a negotiated price." Calling the owner, the reporter was told that the rent for August would be 4,500 yuan, and that this is negotiable.
(China.org.cn by Wang Wei, August 8, 2008)