Sales of parking spaces in Hong Kong dry up as investors hold back amid stalling economy, coronavirus

Sales of parking spots plunged 66 per cent to a five-month low in February as the combined impact of last year’s social unrest and the coronavirus hurt the market

Despite the massive slowdown in sales, there were still some eye-watering deals in the famously lucrative market

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In February, 163 parking spots changed hands in Hong Kong, worth a total of HK$239 million. Photo: Felix Wong

Published: 7:00am, 17 Mar 2020Updated: 8:36pm, 17 Mar 2020

Hong Kong’s lucrative parking space market has almost ground to a halt as the combined impact of last year’s social unrest and the coronavirus pandemic have battered the local economy, analysts said.

Sales of residential parking bays slipped to a five-month low, plunging 65.6 per cent to 205 transactions in February from the previous month, data from Centaline Property showed. The total value of parking spaces changing hands fell 76.2 per cent to HK$352 million (US$45.2 million).

Deals involving new parking bays took the biggest hit, tanking by 90 per cent as developers held back supply at their new projects.

Buying parking spots as an investment – generating returns by renting them out or selling at an appreciated value – has essentially dried up, said Wong Leung-sing, senior associate director of research at Centaline.

“Investment sentiment has been gloomy for longer than expected but there is still some demand from buyers who are actual car owners,” he said.

Investment activity in the wider real estate market has slowed since last year’s social unrest, the onset of a technical recession and the current coronavirus pandemic.

The second-hand parking space market has been hovering around 170 deals in each of the last four months. In February, 163 parking units changed hands, worth a total of HK$239 million.