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Recession cuts value of Olympic flats by 40 per cent
Matthew Beard, Sports News Correspondent18 Feb 2009
AT least £300million has been wiped off the projected re-sale value of the taxpayer-funded Olympic village by the recession, insiders have revealed.
Olympic sources say the 2,800 apartment project in Stratford would fetch £500million at today's prices compared with forecasts during the property boom in 2007 of £800million, with a two-bedroom apartment with views over the Olympic Park costing £300,000 instead of £450,000.
The drop of almost 40 per cent underlines the risk to the project as extra taxpayers' cash is pumped in during the credit crunch. The Olympic Delivery Authority stresses that it expects prices to improve before the flats are brought to market in 2015.
"No one can predict what the value of flats will be when they are sold off," an ODA spokesman said, adding: "We are confident they will be an asset."
The credit crunch has already taken its toll on the Olympic village project, which last month had to be given a £326million funding injection by ministers. The ODA is confident it can secure backing and equity from Australian developer LendLease. It has until the end of next month to find the funds.
Reader views (5)
The olympics will be held in 2012 - and the flats will go on the market in 2015 - whose idea is it to leave them empty for three years risking squatters, vandalism, and general decay? I smell a rat
- R.F., Yorks, UK, 19/02/2009 17:58
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I would like to know why the flats are not going to market until 2015 if they are habitable by 2012. Does that mean they are going to be standing empty for up to 3 years? I suppose if the public sector is involved then anything is possible.
- Sarah Bradshaw, Enfield, Middx, 19/02/2009 13:08
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As far as the Governments plans to make a profit on these go, it reminds me of a saying my late father used to say, and I quote,
"If you wanna make God laugh, tell him your future plans"!
Andy, London is right, no good speculating, London may not be here in 2012!
- Geronimo, LONDON MIDDLESEX, 19/02/2009 03:31
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This story sums up the current problems we are facing. Somebody borrowing money on the pretence of something being worth a lot more in the future.
This bubble has burst big time and has put us all in a mess.
- Andrew, London W1, 18/02/2009 21:14
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That is based on the current value. In 2012 we should be moving out of the recession and house prices rising again. there is absolutely no point in speculating what house prices will be in 3 years time
- Andy, London, 18/02/2009 17:51
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