The Impact of Staging Olympic Games on Real Estate Price in Beijing

Abstract

The price of the real estate in many cities of China has been rising up rapidly since a couple of years ago. Particularly, the increasing period is coinciding with the period of economic rising in Beijing. Therefore, many people thank that the higher price is mostly made by holding Olympic Game in 2008. In order to separate Olympic factor and non-Olympic factors, which were supposed to impact the price of real estate in Beijing, Differences-in-Differences (DD) method will be adopted in this paper. With this method, Olympic period & non-Olympic period, Olympic cities & non-Olympic cities will be defined. The result could be denoted to assess the impact of holding Olympic Games on real estate price in Beijing. Meanwhile, surveying data person by person and economic cycle analysis will be used to support the result. The conclusion is that Olympic factor enlarged only the extent of increasing and decreasing in the economic cycle other than changing the tendency of the price cycle of the real estate.