Price of parking spaces at Hong Kong’s Lohas Park soar a record 23 per cent as Wheelock sells last 87 bays at Malibu flats

The price of car parking spaces at the Lohas Park residential enclave in Hong Kong’s Tseung Kwan O district has risen to a record high, as a chronic shortage in the area forced vehicle owners to bid up prices.

Wheelock Properties, the developer of the Malibu apartments, released the final 87 parking bays in the project at a price range of between HK$2.2 million and up to HK$2.46 million (US$316,396) each, an increase of as much as 23 per cent from two years ago. Applications to bid for the spaces closed yesterday.

Hong Kong is well served by networks of subway trains, surface trams and buses that connect all but the most exclusive residential enclaves with the main business districts, a convenience that has reduced the need to own cars, with the local population owning fewer than 80 vehicles for every 1,000 people, at the bottom 40 per cent of global rankings.

Still, the supply of car parking spots had lagged far behind the growth in vehicle ownership, as developers built homes with higher profit margins at the expense of parking bays. Malibu, comprising 1,600 flats in six tower blocks, only has 263 parking bays between them, or one spot for every six flats.

“Monthly rent increased to HK$5,000 and still it’s not easy to find one,” said Derek Chan, head of research at Ricacorp Properties.

The soaring price of space at Malibu matches rising costs at other developments in Lohas Park.