ExplainerWhy does a car parking bay in Hong Kong cost more than a flat in London’s upscale Knightsbridge area?

Name: Why car park ownership is big business in Hong Kong
Uploaded: 2021-06-12T02:30:00.000Z
Duration: 3 min 23 s
Description: Why car park ownership is big business in Hong Kong

A car parking bay at the super-deluxe Mount Nicholson project fetched a record HK$11.9 million (US$1.53 million) last month

With housing prices reaching unaffordable levels, investors are targeting car parking bays because of the low entry barrier and limited supply

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A general view of the Mount Nicholson luxury housing development where a parking spot sold for a record US$1.53 million last month. Photo: AFP

Sandy Li

Published: 10:30am, 12 Jun 2021Updated: 2:09pm, 12 Jun 2021

Hong Kong has long maintained its reputation as one of the world’s most expensive cities to own a home. Now, add car parking bays to the list.

Car parking bays in Hong Kong have been smashing records over the past few years. Last month a spot sold for a world record HK$11.9 million (US$1.53 million) at the exclusive Mount Nicholson development on The Peak. A 735 sq ft flat in Sloane Court East, in London’s upscale area of Knightsbridge, costs slightly less.

Hong Kong’s sky-high home prices, which are approaching a historic high, are pushing investors to look for other real estate investment alternatives, especially after the government removed the double stamp duty on non-residential property last November.

The low entry prices coupled with limited supply have made parking spaces a target for investors. Transactions for parking spaces in May rose 18 per cent month on month to 1,039, the highest since July 2018, according to Midland Realty.

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Why car park ownership is big business in Hong Kong

What are the reasons contributing to the rise in prices of parking bays?