Amid limited supply and soaring demand, a 188 square foot parking space in Hong Kong was sold for Rs 4.3 crore (HKD 5.18 million)—an amount which could have afforded a three-bedroom flat at some of the housing complexes in the city.
Kwan Wai-ming, the executive director of Huarong Investment Stock Corp, paid the world record price for his third parking spot at the Upton apartment complex in western Hong Kong’s Sai Ying Pun, reported South China Morning Post.
The deal broke the previous record set last year when a parking space was sold for HKD 4.8 million (approx. Rs 4 crore).
Kwan is known for being involved in eye-grabbing deals in Hong Kong. He had spent a total of HKD 75.6 million (Rs 62.75 crore) since 2014 for two apartment units in the same complex. Later he bought two parking space for a total of HKD 7.76 million (Rs 6.44 crore).
Hong Kong is regarded as the costliest major urban centre on earth for living owing to its high price tag for properties. In the area where Kwan bought the parking space, the average rate for a unit space is between HKD 3 million to HKD 4 million each, agents said.
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In the last 12 years, the growth in parking space rates in the city has surpassed the growth in housing 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.The average price in the city for a unit of parking space hovers around HKD 1.47 million (Rs 1.22 crore) in April, 270 percent higher than the rates in 2005. Comparatively, prices for secondary homes rose 256 percent in the same period.