If you stay worried all the time about the rising real estate prices in India, the latest news might give you peace for some time. The prices of parking spaces in Hong Kong beat India by a good margin and the difference is so high that these are sold for much more than what the most expensive land pieces in Mumbai's Band Stand and South Mumbai are being retailed for in terms of prices per square feet and not an absolute value. These are the same places where Shahrukh Khan's Mannat and Mukesh Ambani's Antilia are located respectively. Recently, a parking space in Hong Kong has been sold out for a whopping HK $6 million that translates to Rs 5.26 crore. The identity of the buyer has not been disclosed yet. The parking space has been sold in the Kowloon Ho Man Tin district of Hong Kong and the price has seen a six-fold increase since the year 2006. On the other hand, the home prices have increased 3.4 times during the same period.
Speaking about the development, Darrin Woo, a classic car collector said that he would not buy a space for parking as he could buy five cars in the same price. Darrin shipped his 1968 Mercedes Benz 600 Pullman and 1957 Fiat Abarth to California in order to save money on parking. The Car owners in London and New York have been facing similar problems. According to the New York Times, the spaces were advertised for $1 million in Manhattan.
For this situation, the developers in Hong Kong can be blamed partially. The reason being, they make more money building apartments in comparison to garages and hence, the ratio of parking spots to housing units has decreased. The number of parking spaces increased just 9.5 percent to 743,000 from 2006 to the year 2016. On the other hand, the private car population jumped to 49 percent at 536,025, as per a report by the city’s Transport Department and this is one of the prime reasons why the price of parking space are on an all-time high.
It is no strange that Hong Kong is a place known for sky-scraping prices when it comes to land. The city has been known for the world’s least affordable housing market for eight years in a row now. A parking spot costing HK$2.25 million in Hong Kong has a stamp duty of 3 percent in comparison to home purchase taxes that have the same at 30 percent. Furthermore, there’s an additional 15 percent tax for switching a property within a year, while car parking spaces are exempted.