18 July 2019
Hong Kong's property boom has seen parking spaces command ever higher premiums. Photo: Bloomberg
Hong Kong's property boom has seen parking spaces command ever higher premiums. Photo: Bloomberg

Would you pay HK$5 million for a parking space?

A popular saying goes, “An inch of land is worth a feet of gold”.

In Hong Kong, where property prices are among the loftiest in the world, this means that it is not only the actual living space that comes at a high premium but also the car parking spots.

This is especially the case in the core Central district, which is not known to be carpark friendly.

Let’s take a look at the latest news, developments that pertain to parking spaces at The Center, the office tower that is changing hands following a sale late last year by tycoon Li Ka-shing.

According to the Hong Kong Economic Journal, the new owner of the 73-storey commercial building may consider selling carpark lots to tenants at an entry price of HK$5 million.

The tag is for units in the basement Level Three. For spots in the more convenient basement Level One, one would have to pay HK$6 million.

To finance its acquisition of the HK$40 billion office tower, the purchasing consortium is offering tenants the option to buy their own floors, which then led to the idea of selling carpark lots as well.

That would help lower the financial burden for the record Grade A office transaction.

Well, not too expensive, one may reckon, given that new studio apartments in the city are being priced at no less than HK$10 million.

Assuming a one-room studio is about the size of two carpark slots, which would measure 5 meters by 2.5 meters, or about 133 square feet, no one would say that this is crazily priced.

That said, it is still a mind-numbing number.

Given the money that car owners pay per day for renting parking spaces, we can assume they would be paying about 25 years of rental in one go to ensure they have a spot in Central.

Anyway, let’s not fret about the issue of buying versus renting.

After all, it is a dilemma only facing the rich, and not us ordinary folk.

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EJ Insight writer

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