$765,000 parking space: Hong Kong Couple Sells Car Parking Space.
Car parking spaces are much expensive than apartments in Hong Kong, according to a Bloomberg report.
In fact, the market for parking space is booming so much that a single spot in a Kowloon’s luxury district was sold for a record-breaking HK$6 million ($765,000).
The Ultima luxury development in Ho Man Tin has the most expensive spots, measuring 16.4 feet by 8.2 feet, and the price per square foot of a single patch is much higher than average housing property in Hong Kong.
The record makes Ultima the most expensive space to park your car. The space was bought by a couple just nine months ago for $430,000.
The average parking space in the city now goes for HK$2.25 million ($274,000). That’s more than six times what they used to sell for in 2006. In contrast, prices of houses increased by 3.4 times in the same period. Hence, the city’s housing market that is considered one of the most expensive and unaffordable in the world looks cheap in comparison to parking spaces.
“It’s crazy,” said Darrin Woo, a classic car collector. “Buy a space? No way. I could buy five cars for that much.”
Woo was forced to ship his 1968 Mercedes-Benz 600 Pullman limo and a fiery red 1957 Fiat Abarth to California so that he would not have to pay such an exorbitant fee to store them.
The blame lies on Hong Kong developers, experts claim. They make more money building apartment complexes than garages and parking spaces, which is why the number of car parking spots have declined at a time when demand is high. According to the Transport Department, the number of parking space from 2006 and 2016 grew just 9.5 percent as opposed to the number of cars, which spiked 49 percent.
Speculators are worsening the shortage of car parks. The space has become an appealing alternative to residential property in the past few years, especially since the government imposed additional taxes and capped mortgages to as much as 50 percent to control housing prices. A car park that costs HK$2.25 million ($286,684) carries a stamp duty of 3 percent compared with house purchase taxes that can go up to 30 percent. There is also a 15 percent additional tax for flipping a residential property.
Hong Kong residents often invest their money in the strangest things including golf carts and taxi medallions that sell for as much as $255,000.