Investments exist in many forms. Some people invest in gold, some in cryptocurrency, stocks and shares, and some prefer the good’ol properties. Meanwhile in Hong Kong, folks with disposal income are investing in parking spaces. Yup. You heard right. Parking lot investment is a thing. In fact, to say it is a thing is an understatement. It is A HUGE THING. According to a report, a couple in Hong Kong has recently sold a parking spot for an astonishing, astronomical sum of 6 million Hong Kong dollars! (or around US$765,000 based on what Google tells us).
Holy mother of… that’s the price someone did part for a tiny studio apartment for a new development in Sai Ying Pun neighborhood! And that, btw, is for a 292 square feet (27 square meter) space complete with kitchen, sleeping space and all. The similarly priced parking spot, however, is just 16.4 by 8.2 feet which works out to be a little over 134 square feet (12+ square meters), or less than half of the area of 6 million HKD apartment.
With a mean average of 15,600 HKD (US$2,000) per square foot for residential property, it looks like this latest record breaker has outdone the already ridiculous per square foot price in Hong Kong, coming in at a cool 16,350 HKD (US$2,084) per square foot. In case you are wondering, the parking lot that transacted at this ridiculous amount is located at Sun Hung Kai Properties’ Ultima apartment complex in Kowloon district and it was bought by the unnamed couple nine months ago from another anonymous person for 3.4 million HKD (around US$433,000).
Wow. The couple actually pulled in a healthy 2.6 million HKD (about US$330,000) in profit and in the process, smashing the previous record set in June last year by a business executive who paid 5.18 million HKD (US$660,000) for a Sai Ying Pun’s parking spot. Like, WTF? This can’t be happening, right? Oh, wait, it is happening and it is indeed sad for Hong Kongers. If anything, this particular transaction highlighted one of the plight of Hong Kong residents.
Anyways, the rising cost of accommodation in Hong Kong is very real and so is the parking space investments boom. It is so real that it warrants TRT World to investigate further and made a feature documentary about it.
You can watch the documentary in the embedded video below.