Hong Kong property

Investors steering to car park spaces for decent returns

PUBLISHED : Wednesday, 14 November, 2012, 12:00am
UPDATED : Wednesday, 14 November, 2012, 3:22am

Retired teacher S.W. Kong learned the value of getting her timing right when she bought a car park space last month.

Kong bought the space in the Golden Lion Garden residential complex in Tai Wai from owner Chinachem Group for HK$240,000.

"The deal had not yet been completed when they raised the prices of the remaining unsold spaces at Golden Lion Garden by about HK$40,000," said Kong.

That meant she could book a gain of HK$40,000 before she had even parted with her money.

Kong, who has invested in car parking spaces previously , said the market had recently become more active because the lump-sum payments required were smaller than those needed to buy a flat.

Jeffrey Ng, senior executive director of Hong Kong Property Services (Agency), said since the new stamp duties on home purchases were announced by the government at the end of last month, some investors had shifted to other investment vehicles such as new and second- hand car parking spaces.

He expected the buying trend to continue.

Earlier this month, Chinachem Group released a number of parking spaces in Hong Kong Garden, Bella Vista, Golden Lion Garden, Belair Gardens and Shatin 33.

It sold 600 spaces in the first two days of the sale on November 5 and 6.

Terence Wong, senior sales manager at Hong Kong Property, said 10 car parking spaces in Nan Fung Sun Chuen in Quarry Bay were sold in the secondary market over the weekend.

Home sales activity remained very slow, Wong said.