The regeneration effects from hosting an Olympic games has generally had a positive impact on house prices. Barcelona was the best performing host city with prices rising by 131% versus an 83% increase in Spanish house prices in the five years leading up to the 1992 Olympics.
Hosting an Olympics is usually associated not only with an increase in sporting facilities but also an upgrade of transport and cultural/leisure facilities. Barcelona, Athens and Sydney all saw a significant upgrading of their urban infrastructure and this city rejuvenation is likely to encourage higher house prices.
Areas close to the Olympic complex usually see the largest increase in house prices as they benefit from improved facilities and better transport links. This was clearly evident in the main area of development for the Sydney Olympics, Homebush Bay, a former industrial site 20 minutes from the centre of Sydney. House prices in the adjacent suburb, Homebush, rose 70% in the five years in the run-up to the Olympics, compared to a 50% increase in Sydney house prices.
The Manchester Commonwealth Games prompted redevelopment and rejuvenation of central Manchester and provided a spur to house prices in the area. In the five years leading up to the 2002 Commonwealth Games, house prices in central Manchester rose by 102% versus a 52% rise in prices in the North West and an 83% increase in prices across the UK.
Here is a recent link that shows an increase in home values with Olympic announcements in London:
House prices in East End rise after Olympic win
Meanwhile, Atlanta experienced a growth of 1.3 million new residents following the Games, which created the need for $1.8 billion of new hotels, office buildings, high-rise residential buildings and entertainment venues which were developed between 1996 and 2006.
And Atlanta is no exception. Barcelona, touted as the most successful recent games, saw a 240 percent increase in new house prices prior to the Olympics. And in Sydney between 1994 to 2005, the boom in new apartments and rapid increase of house prices contributed to the growing tendency for people to leave the city (in fact, the Reserve Bank warned that Sydney had become too expensive in August 2005).
It will certainly be interesting to see how Beijing's real estate market will fare after the 2008 Olympic Games. It's already predicted that the new supply in the city's high-end residential and retail markets will most likely triple in the upcoming years. And the average real estate sales price currently is estimated at 24,010 yuan ($3,500) per square meter, compared with 15,838 yuan at the end of 2006.
Money magazine recently named Atlanta as one of the "top six places to buy a home these days." Not bad for being in the midst of a record-breaking downturn that's affecting real estate markets nationwide.
Is there a correlation between Atlanta's strengthened real estate market following the 1996 Olympic Games and the fact that they're fighting through the real estate downturn better than most large cities?
Sources: Halifax and Skyline Views
-Dave Straub, @properties 773.255.3180
(@properties December 2008 Newsletter)
Saturday, November 29, 2008
Thursday, November 13, 2008
Confidence Key For Today's Buyers and Sellers
If there's one voice I'm willing to heed in the midst of a global financial crisis, it's Warren Buffet's. So I was encouraged when the Oracle of Omaha offered his sage and steady advice in a New York Times op-ed piece last month: "A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful."
Mr. Buffet was referring of course to his philosophy on investing; however, his comments could just as easily apply to today's real estate market. While many Americans are understandably apprehensive about buying or selling a home, I wholeheartedly agree with Mr. Buffet's view that those of us who have the confidence to act in today's uncertain market stand to gain the most.
For buyers, it's no secret that good values abound. If you are pre-approved for a mortgage and rely on your Realtor's thorough knowledge of local markets, you will almost certainly be able to take advantage of today's adverse economic conditions.
For sellers, it is absolutely critical to position your property as the best home, in a given location, at a given price. And for those willing to do so there is good news. One, Chicago once again is showing its resiliency relative to major markets across the country. Two, today's buyers aren't tire kickers; they're serious. But inventories will likely rise early in the year, as they do every year, so now is not the time to "test the market."
Finally, it's important to remember that the same conditions that make this a challenging time to sell will benefit that seller-turned-buyer even more in a move-up transaction.
If you have any questions about whether or not this is the right time for you to get into the market, please contact me.
-Dave Straub, @properties 773.255.3180
(@properties November 2008 Newsletter)
Mr. Buffet was referring of course to his philosophy on investing; however, his comments could just as easily apply to today's real estate market. While many Americans are understandably apprehensive about buying or selling a home, I wholeheartedly agree with Mr. Buffet's view that those of us who have the confidence to act in today's uncertain market stand to gain the most.
For buyers, it's no secret that good values abound. If you are pre-approved for a mortgage and rely on your Realtor's thorough knowledge of local markets, you will almost certainly be able to take advantage of today's adverse economic conditions.
For sellers, it is absolutely critical to position your property as the best home, in a given location, at a given price. And for those willing to do so there is good news. One, Chicago once again is showing its resiliency relative to major markets across the country. Two, today's buyers aren't tire kickers; they're serious. But inventories will likely rise early in the year, as they do every year, so now is not the time to "test the market."
Finally, it's important to remember that the same conditions that make this a challenging time to sell will benefit that seller-turned-buyer even more in a move-up transaction.
If you have any questions about whether or not this is the right time for you to get into the market, please contact me.
-Dave Straub, @properties 773.255.3180
(@properties November 2008 Newsletter)
Friday, November 7, 2008
Living Green
Living Green
Just as recycling gradually became a part of our everyday lives, “green” features in Chicago homes are becoming more and more common, thanks to demand from homebuyers who want to address their concern for the environment in their day-to-day living.
Encouraging this trend toward green building is the United States Green Building Council’s LEED (Leadership in Energy and Environmental Design) rating system, which certifies both residential and commercial buildings for meeting environmentally responsible design and construction standards.
Although LEED-certified residences are still somewhat rare, most developers agree that the eco-friendly building techniques and features endorsed by the Council will soon be the standard in new-construction homes. In the meantime, homebuyers in Chicago can choose from plentiful housing options that offer many of the same features that contribute to LEED certification, such as:
A location near public transportation
Building materials containing recycled content
Renewable energy sources such as solar power
Energy-efficient windows, appliances and heating and cooling systems
Plumbing fixtures that reduce overall water use
Rapidly renewing or recycled materials for interior finishes, such as bamboo flooring, wool carpet, and countertops made from recycled metal or glass
Low-VOC paints, carpets adhesives and sealants, which limit emission of volatile organic compounds and thereby promote a healthier indoor environment
Native vegetation in landscaped areas or on a green roof
A landscape irrigation system that recycles rainwater
Facilities for storage and collection of recyclables
If green features are important to you, talk to your @properties agent. We’ll help you find a housing option that fits your needs.
-from www.atproperties.com
Just as recycling gradually became a part of our everyday lives, “green” features in Chicago homes are becoming more and more common, thanks to demand from homebuyers who want to address their concern for the environment in their day-to-day living.
Encouraging this trend toward green building is the United States Green Building Council’s LEED (Leadership in Energy and Environmental Design) rating system, which certifies both residential and commercial buildings for meeting environmentally responsible design and construction standards.
Although LEED-certified residences are still somewhat rare, most developers agree that the eco-friendly building techniques and features endorsed by the Council will soon be the standard in new-construction homes. In the meantime, homebuyers in Chicago can choose from plentiful housing options that offer many of the same features that contribute to LEED certification, such as:
A location near public transportation
Building materials containing recycled content
Renewable energy sources such as solar power
Energy-efficient windows, appliances and heating and cooling systems
Plumbing fixtures that reduce overall water use
Rapidly renewing or recycled materials for interior finishes, such as bamboo flooring, wool carpet, and countertops made from recycled metal or glass
Low-VOC paints, carpets adhesives and sealants, which limit emission of volatile organic compounds and thereby promote a healthier indoor environment
Native vegetation in landscaped areas or on a green roof
A landscape irrigation system that recycles rainwater
Facilities for storage and collection of recyclables
If green features are important to you, talk to your @properties agent. We’ll help you find a housing option that fits your needs.
-from www.atproperties.com
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