Just got a copy of a 10 page report on the preparation of Beijing’s 2008 Olympics, written by the firm Cushman & Wakefield (“Global Real Estate Solutions”):
“After The Games are Over – Feast or Famine? Will Beijing suffer the fate of past host cities or will the games add to the momentum of this growing city?”
Author is said to be Rachael Jones, based in the Shanghai Office. Well, maybe that’s why.
The report seems to be based on solid research, including the experiences of past Olympic cities and comes up with – at face value – convincing figures and statements.
Unfortunately, many of them are plain wrong. It repeats the typical distorted view on the cost of the Olympics (see earlier entry in this blog!), completely misunderstands the so-called “frugal” approach for the stadiums (creating the potential disaster for post-Olympic operation), misses the real risk factors in the post-Olympics, etc. At a first glance, the analysis of the hotel sector also seems dubious.
I did a very detailed study on the former Olympic cities on behalf of the Beijing Government (see our website and the brief about me) as well as a review of the main economic issues for the post-Olympic economy. I also visited some of the locations and discussed with the local governments.
The other curious conclusion (for somebody who is supposed to understand Beijing!) is the impact of the Olympics on the residential real estate. Luckily this is in part corrected by pointing out somehow the underlying need for new housing that has nothing to do with the Olympics.
Our firm had just a series of meetings with real estate investors from different countries and the point of view on the local market were, well, very different.
Well, all good for my ego. Just confirms to me how few people understand what has been going on here, what are the challenges for the Beijing economy – and the real estate sector. So, I better charge more – right people?
Or maybe simply write that book. Well, maybe not. Some people here might not be so happy…