The Olympics and the London Property Market - London Property Market View by Graham Norwood

Graham Norwood has been a journalist for over 20 years and writes on residential property for newspapers, magazines, websites and blogs in the UK and across the world.


It’s difficult to feel anything other than undiluted pride at Team GB’s successes in Beijing – but there’s one a property lesson to take from the 2008 Olympics, too.

One of the largest estate agencies in the Chinese capital, Zhongda Hengji (or Golden Key), says over 20,000 apartments had been available to rent during the games, many of them having been bought from new specifically for this event. Perhaps inevitably, rents were increased to 4.6 times the average rate.

The result? Well only 8,000 apartments were rented out – that’s just 40% of the supply – and those that went quickest and for the best rent were high-end properties in the centre of the city, rather than those closest to the sporting venues.

As London’s property market staggers through this autumn, it may be tempting to look to Stratford for an investment property in London ahead of 2012. Well, demand for rental accommodation will be high – but might it all turn out like Beijing, with a glut of supply over demand?

Remember that when times are tough there’s a flight to quality; it is therefore likely that Holland Park, the West End and Mayfair will succeed even at Olympic time, and even if low-cost flats in east London are near the velodrome and the track and field events.

If there is a gold rush for property in 2012, it’s more likely to take place in long-established prime central London, no matter how well Team GB does in Stratford.