Olympic Size Cash Injection will be Great News for China’s Real Estate Investments
Preparation for the 26th Modern Olympics is already in full swing and massive spending will ensure that Beijing’s development will sprint into 2008
In terms of infrastructure, Beijing is spending an estimated $35-40 billion in preparation for the Games and an extra $2.1 billion the upkeep of these services. This will provide a major boost to local employment, by creating tens of thousands of jobs and in turn, increased public spending.
The games will also demand vast quantities of accommodation, on a variety of scales, as half a million visitors arrive in August next year. According Morgan Stanley Beijing should not experience an economic downturn, which has happened in some countries, after the Olympics. This is due to the relatively low GDP that city currently generates. Property research showed that individual investors believe that Beijing's property investment market has nowhere to go but higher, faster and stronger in the coming year.
Beijing's spending on new subways, roads, and stadiums is not the exception to the rule. China, on the whole, is in the middle of a wider urbanisation process with $198 billion has been earmarked for the expansion of the railway system by 2010 – almost five times the amount that is being spent on Beijing's infrastructure.
Chinas’ economy has strengthened dramatically in recent years with an annual growth of 11.9%, the fastest within the last 12 years. "The Olympics will help increase demand to some extent, but they themselves won't have an impact in terms of expanding economic capacity," said Song Guoqing, chief economist with the China Stock Exchange Executive Council.
Some analysts foresee the Games influencing the fortunes of the world's fourth-largest economy and taking a long-term view, the economic input will focus more on the quality as opposed to quantity, said Chen Xingdong, chief economist with BNP Paribas Peregrine in Beijing.
For more information on global investment opportunities and to findout about Obelisk International’s latest projects, contact: Obelisk International on 0808 1600670 or info@obeliskinternational.com
In terms of infrastructure, Beijing is spending an estimated $35-40 billion in preparation for the Games and an extra $2.1 billion the upkeep of these services. This will provide a major boost to local employment, by creating tens of thousands of jobs and in turn, increased public spending.
The games will also demand vast quantities of accommodation, on a variety of scales, as half a million visitors arrive in August next year. According Morgan Stanley Beijing should not experience an economic downturn, which has happened in some countries, after the Olympics. This is due to the relatively low GDP that city currently generates. Property research showed that individual investors believe that Beijing's property investment market has nowhere to go but higher, faster and stronger in the coming year.
Beijing's spending on new subways, roads, and stadiums is not the exception to the rule. China, on the whole, is in the middle of a wider urbanisation process with $198 billion has been earmarked for the expansion of the railway system by 2010 – almost five times the amount that is being spent on Beijing's infrastructure.
Chinas’ economy has strengthened dramatically in recent years with an annual growth of 11.9%, the fastest within the last 12 years. "The Olympics will help increase demand to some extent, but they themselves won't have an impact in terms of expanding economic capacity," said Song Guoqing, chief economist with the China Stock Exchange Executive Council.
Some analysts foresee the Games influencing the fortunes of the world's fourth-largest economy and taking a long-term view, the economic input will focus more on the quality as opposed to quantity, said Chen Xingdong, chief economist with BNP Paribas Peregrine in Beijing.
For more information on global investment opportunities and to findout about Obelisk International’s latest projects, contact: Obelisk International on 0808 1600670 or info@obeliskinternational.com
posted by Chris at 12:22 pm
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