Following last week’s article on Mumbai’s car parking prices, it would seem that Hong Kong is also experiencing a similar boom in car parking property prices.
Soaring property prices have seen the Hong Kong government introduce measures to cool residential property prices (which jumped 20% in the first nine months of this year), seeing many property speculators snapping up car parking spaces instead. According to SACommercial Property News, this in turn is raising fears of a bubble.
According to Business Day Live, one investor had put a total price tag of HK$100m (AU$12.3m) on 34 parking spaces in a commercial building in an area just five minutes’ drive from the heart of Hong Kong’s financial district. The average price for each space in the building was about HK$3m (AU$370,000), higher than the cost of a small apartment in some areas of Hong Kong, home to the world’s most expensive residential and retail property.
Sales of new parking spaces surged about 50% in November. Hong Kong leader Leung Chun-ying, who took over on July 1, earlier this month expressed concern over the effect of hot money flows into the city after the US launched a third round of quantitative easing in September.
“Capital is flowing into Hong Kong, into its property market. Some people buy luxury properties, we’ve seen soaring prices there … money is also flowing into shops, commercial premises and car parks,” Mr Leung was quoted in Business Day Live.