Hong Kong property

Buyer of world-record US$760,000 parking space is boss of Hong Kong financial company

PUBLISHED : Wednesday, 20 June, 2018, 7:04pm
UPDATED : Wednesday, 20 June, 2018, 11:00pm

One of the Hong Kong residents who spent a jaw-dropping HK$6 million (US$760,000) on the world’s most expensive parking space has been identified as the head of a financial company in the city.

Jack Chan Siu-kit and Cheung Tsui-ling are the mystery buyers of the parking bay at the Ultima luxury residential development in Ho Man Tin, according to data released by the Land Registry on Wednesday.

The pair forked out HK$44,444 per square foot for the space this month, handing the Hong Kong couple who had bought it last September a quick HK$2.6 million profit.

Hong Kong couple earn a US$330,000 profit in nine months … by reselling a parking space

Chan is the chairman of the board and executive director of Pan Pacific Financial Holdings, according to the websites of Chinese state news agency Xinhua and the Internet Professional Association. However, a search by the South China Morning Post found no record of the firm at the Companies Registry or the public register of the Securities and Futures Commission, Hong Kong’s financial regulator.

Chan and Cheung, who own a large portfolio of Hong Kong property, are founders of the Chinese Youth Dreamers Foundation, a non-governmental organisation.

The Post made a visit to the foundation’s office in the Lippo Centre in Admiralty on Wednesday and found the unit is occupied by Pan Pacific.

A staff member said the office is shared by Pan Pacific and the Chinese Youth Dreamers Foundation.

Chan is also the president of an alumni association of Xiamen University.

Hong Kong car parking space is a better investment than a flat

Chan and Cheung own at least nine luxury properties in the city, according to a report in Apple Daily.

The pair forked out more than HK$200 million for six high-end apartments between 2014 and 2015. They comprised two flats for HK$67.51 million at Ultima, where the record-breaking parking bay is located, three flats in Tsim Sha Tsui’s Grand Austin for HK$106 million, and a flat in The Hermitage in Mong Kok west for HK$28.09 million.

Chan bought a parking space at The Hermitage for HK$2.55 million in April 2016.

Fuelled by this month’s record deal at the Ultima development, a parking space at The Arch at Kowloon Station is now on the market for HK$6 million.

Vincent Cheung, deputy managing director for Asia valuation and advisory services at Colliers International, said super-rich businessmen do not mind paying a huge premium for parking their vehicles outside their apartments.

“HK$6 million is not really a lot of money. Compared to the prices of flats there, it is not really expensive,” Cheung said.

Executive pays HK$5.18 million for car parking space

A four-bedroom flat measuring 1,911 square feet at Ultima carries a price tag of HK$98 million, or HK$51,282 per square foot, according to Centaline Property Agency.

A four-bedroom flat of 1,300 square feet at The Arch is also on sale for HK$98 million, or HK$58,858 per square foot.

Hong Kong has seen a series of parking spaces change hands for record-breaking prices. A recent example is a bay at Dragons Range in Sha Tin, which sold for HK$4.8 million in April, the highest amount ever in the New Territories. The original buyer netted HK$3.45 million in two years by reselling it.

In June last year, a business executive paid HK$5.18 million for a space in the city’s Sai Ying Pun area, a new record at the time.

A total of 1,033 parking spaces worth HK$2.08 billion changed hands last month, up 19.8 per cent from the previous month, according to Centaline.

“The price of a parking space depends on its features, individual needs and potential rental yield,” said Kenneth Woo, principal sales director of Ricacorp Properties.

Chan and Cheung’s new parking spot will probably not make a good investment, according to Cheung.

“For a parking space of HK$6 million, the yield may be as low as 1 per cent,” he said.