Due to the scarcity of land, real estate in Hong Kong is very expensive. Parking space is also very expensive.
Recently, a parking space in Hong Kong was sold for up to 10.2 million HKD, about 1.32 million USD. It is known that this is one of the few parking spaces in Hong Kong’s The Peak
This standard 12.5 m2 parking space is part of the planning of The Peak – where Hong Kong’s super-rich live. Overlooking Victoria Bay, this residential area on Mount Nicholson is known for its “crying” prices./
In May, two investors Wharf (Holdings) and Nan Fung Group sold a total of 29 parking spaces in phase 2 and phase 3 of the high-end residential project The Peak. One of them is the above-mentioned 10.2 million HKD parking space.
“This is definitely the most expensive parking space in Hong Kong,” said William Lau, sales manager at Centaline Property Agency.
Hong Kong does not have a lot of land for both housing and parking. Therefore, parking spaces in Hong Kong are often sold at very high prices. However, the above HKD 10.2 million has set a new record for parking prices here.
Over the years, Hong Kong has often been listed as one of the most expensive places to live in the world. Previously, there were also many parking spaces sold at exorbitant prices in Hong Kong. For example, in 2019, a parking space in Hong Kong was once sold for $980,000.
Parking in Hong Kong is so expensive that it has become a separate real estate business for people to buy, resell and make a quick profit. In 2018, 8,968 parking spaces in Hong Kong had a total value of HKD 16.64 billion.
Parking in Hong Kong has recently continued to increase in price after an additional registration fee for non-resident transactions was eliminated last November. According to real estate company Ricacorp Properties, parking prices here in May increased by 18% compared to the previous month.
At The Peak, apartments usually cost between 400-600 million HKD. Therefore, spending HKD 10.2 million to buy a parking space is practically nothing for Hong Kong’s rich. “What interests them most is that they need a place to park, not money. They buy to use, not to invest,” Mr. William Lau added.
An unnamed apartment owner in The Peak told a South China Morning Post reporter that he paid more than 36 million HKD (106 billion VND) for four parking spaces last month. On average, each of his parking spaces cost more than 9 million HKD. Meanwhile, the starting price offered by the investors is 8.8 million HKD for 1 parking space.
According to this giant, each apartment owner can only buy 1.5 parking spaces. Because he owns 3 apartments, he can buy 4 parking spaces. One of his neighbors also bought 6 cars because he owns 4 apartments.
Market watchers say the number of parking spaces in expensive areas such as Mount Nicholson is quite limited. “If there is a need to buy a parking space, homeowners have to find investors and they sell it, it’s definitely not cheap,” concluded Thomas Lam, chief executive officer of Knight Frank.