Do overpriced Hong Kong parking spaces make for smart investments?
Has Hong Kong’s property market gone car-parking mad? Yes, and prices are getting crazier, say property experts
News broke yesterday that a Hong Kong couple made a whopping US$330,000 profit in nine months by reselling a parking lot at a luxury estate in Ho Man Tin. Are parking lots a better investment than luxury condos in Hong Kong?
A single residential car park space costing US$665,000? Surely that’s madness, you might think? Well, welcome to Hong Kong.
Investors in the city have shown strange tendencies in owning a piece of property. With property prices touching record levels in recent months, investors have been turning their attention to car parks.
For the same crazy amount, you can buy two decent sized homes in the United States or Britain, and still have some money left over.
This car-parking madness could intensify, as the city’s smart investors will continue to pay silly prices for spaces, property analysts say.
“They are a necessity for the apartment owners because they need car parks, and they can afford to pay high prices,” says David Ji, head of research and consultancy, Greater China, at international property consultancy Knight Frank.
However, not all Hongkongers are going car-parking mad just yet. The steep rise in property prices is also leading investors to put their money into another assets, according to a JLL analyst, who warns that the spaces’ value will not appreciate the same way as property prices.