Every square foot of land in Hong Kong is pricey.
In what could be the city’s single largest transaction on bicycle parking space, a group of property investors is said to have paid HK$7.69 million to Henderson Land for 427 bicycle parking spaces.
The deal is part of an HK$86 million transaction that Law Chu-hung paid to acquire 47 parking lots, 52 motorcycle lots and the bicycle parking slots in La Cite Noble in Tseung Kwan O, according to two local dailies.
The eye-popping deal followed a plan to sell the bicycle slots to residents, possibly for a quick profit.
The rule of thumb for Hong Kong landlords seems to be that one gets much more profit by sub-dividing the units as small as possible, as in this case, no more than 10 square feet.
But of course the price for the bicycle parking lot could buy a three-bedroom flat in the secondary market.
Based on the size of the neighboring estate which offers a bicycle parking lot of 5.9 feet by 1.64 feet, we worked out the size to about 9.67 square feet.
Therefore, we estimate the price per square foot is merely HK$1,862, which also puts each bicycle parking slot at an acquisition cost of about HK$18,000.
One can probably say this is a bargain, given that many car parking slots per square foot is equivalent to the home price in the same housing estate.
But bicycle parking space is never really expensive. As in the case of La Cite Noble, the current price per month is about HK$40, while the new residential estates nearby charge something between HK$100 per month to HK$100 per year.
Mind you, Tseung Kwan O is an emerging place for cycling with the newly built Hong Kong Velodrome, where cyclist Sarah Lee competes with her international rivals. The promenade attracts quite a few night cyclists.
It would be interesting to see how much the bicycle parking lot in La Cite Noble, which is already famous for small homes, will be offered. It can’t be too high.
Otherwise, you will see more bicycles in balconies than in parking lots.
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