[photopress:property_beijing_apartment.jpg,full,alignright]Property consultant Savills is of the opinion that Beijing will be the mainlands best residential market to invest in this year as property prices will continue to climb steadily, largely driven by demand generated by this summers Olympic Games.
According to Savills, selling prices of upscale apartments in Beijing are expected to rise 10 to 20% in 2008, while rents jump 20 to 30%.
Savills (Beijing) deputy managing director Eric Chan Wing-fai said high-end flats — mostly service apartments and luxury homes — can act as an indicator reflecting the performance of the entire market.
He said that although high-end apartments only account for about 20% share in the market, they are exerting influence on prices in the mass market.
Beijing’s town planning and infrastructure have been improving because of the Olympics. With an improved living environment, people from other parts of the mainland or even foreign expatriates are lured to live in the city.
Beijing’s flat prices have been soaring since 2003. Savills data shows high- end apartment prices in the city doubled from 2003 to 2007. Average sale prices last year rose about 37.16% from 2006.
Even after the Olympics fever subsides in 2009, Beijing would continue to reap spinoff benefits as international awareness of China will be raised this year, attracting more people to live or invest in the countrys capital that is currently home to more than 8.5 million urban dwellers.