Advertisement
Explainer | Why does a car parking bay in Hong Kong cost more than a flat in London’s upscale Knightsbridge area?
- 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
Reading Time:3 minutes
Why you can trust SCMP
4
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.
Advertisement
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.
03:23
Why car park ownership is big business in Hong Kong
Why car park ownership is big business in Hong Kong
What are the reasons contributing to the rise in prices of parking bays?
Advertisement
Advertisement