Hong Kong parking spaces outperform home prices over 12 year period
Hong Kong car parks prove they’re even better investments than housing, having risen 270pc during the last 12 years
Prices for Hong Kong car parks have outperformed the housing market over the last dozen years, amid shrinking supply and a buoyant market ready to bid up real estate themes in the era of ultra low interest rates.
“Strong demand and rising investment interest will continue to boost prices for car parking spaces,” said Dorothy Chow, a regional director of valuation advisory services at JLL
Underscoring the heated market, Hong Kong took the No 1 spot globally for car parks last week when a Hong Kong executive paid a record HK$5.18 million for a 188 square foot space at the Upton development in Sai Ying Pun.
From an average of HK$396,000 in 2005, car park spaces have risen 270 per cent to HK$1.47 million in April, after touching a record of HK$1.51 million in March, according to data provided from JLL.
During the same period, prices for secondary homes rose 256 per cent to 327.4 points, up from 92 in 2005, according to the Rating and Valuation Department’s home price index.
Chow attributed the rising prices to a shortage of car parks.