Hong Kong joins car parking craze

Photo: Sanfamedia.com

As land supply shrinks and cities become more crowded, the value of car parking spaces and garages has rocketed in cities such as New York and London. Now, Hong Kong has joined the craze, with the sale of a car parking space on Hong Kong island for HK$4.8 million last week.

The deal for the 135-square feet space at 55 Conduit Road, which is worth approximately 619,000 US dollars, sets a record for the city’s most expensive lot.

The space was bought as part of an apartment sale to a buyer from the Chinese mainland, reports the South China Morning Post. Following that HK$56 million transaction, the owner sold the lot to another resident, who already owns a parking space.

The sale follows another sky-high parking space purchase on Conduit Road for HK$4.24 million in 2014, with the SCMP reporting that 54 lots further down the road have recently been put on sale by Phoenix Property Investors priced between HK$3.28 million and HK$4.38 million.

“Investment interest in the sector is growing as the number of parking lots are declining especially in Mid-Levels,” Louis Chan, managing director at Centaline Property Agency’s residential department, tells the publication.

Hong Kong is known for its limited space, which has caused apartment values to soar. With weathly households often owning more than one vehicle, though, car parks are now accelerating in price as well. Indeed, JLL tells the SCMP that car parks values have risen by an average of 204 per cent in the 10 years to 2015, almost at the same speed as the 233 per cent price increase of apartments across the same decade.