Hong Kong parking space transactions rise as investors capitalise on removal of double stamp duty
- About 410 parking spaces have changed hands in first 18 days of December, rising from 299 during the same period in November
- Car parking turnover will ‘remain enthusiastic’: Ricacorp Properties executive
The sales of parking spaces in Hong Kong jumped about 37 per cent in the first 18 days of this month, as investors encouraged by the removal of the double stamp duty on non-residential property returned to the sector.
About 410 parking spaces have changed hands in this period, rising from 299 during the same period in November, according to Land Registry data. Only 237 parking spaces changed hands during a trough in the whole month of February.
The removal of the double stamp duty had benefited the sector, said Derek Chan, head of research at Ricacorp Properties. Transaction “figures show that turnover has become more upbeat. We believe car parking [turnover] will remain enthusiastic,” he said.
Parking spaces have been less affected by the coronavirus pandemic and Hong Kong’s economic recession, and hardly require any maintenance. The scrapping of the double stamp duty has also made them more accessible.
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Whether the number of transactions will rise further depends on launches, Chan said.
A parking space at the Ultima luxury housing project in Ho Man Tin sold for HK$6.25 million (US$806,083) this month, just shy of the development’s record of HK$6.6 million, set in August. Only four parking spaces are available at Ultima currently, in the range of HK$6.5 million to HK$7 million, with very limited room for negotiations, said Henry Ng, senior district associate director at Centaline Property Agency.
Other segments have also recorded an uptick in sales following the removal of the double stamp duty. “Buyers have been active, and the sales of projects have also accelerated significantly,” said Joe Lo, chairman of Star Properties, referring to the strata title sale of the company’s The Cloud industrial building in Tai Kok Tsui.
