HKD6 Million Parking Spot Sets New Record in Hong Kong

What would you do if you had over USD760,000? Some might purchase a house or travel around the world, but in high-cost Hong Kong, one buyer just used that amount to buy a 15-square-meter parking spot.

The parking spot is located in Sun Hung Kai Properties’ Ultima apartment complex in Kowloon District, and sold for HKD6 million (RMB4.86 million) last week.

The average price of parking spaces in Ultima costs over HKD40,000 per square meter, well above an average of HKD15,000 across the whole city and HKD16,000 in Kowloon District, as measured by local real estate company JLL.

Based on official documents, the seller was a Hong Kong couple who paid HKD3.4 million for the parking spot last September. Since then, the value has risen by about 76.5 percent.

The deal set a new record in Hong Kong, one of the most unaffordable cities in the world. The Special Administrative Region also previously made headlines as being the most expensive place to shop, as well as rent offices and retail space, on Earth.

As the graphic above shows, the previous highest price for a parking spot in the city was HKD5.18 million, set one year ago. The Ultima apartment complex has 527 units and only 370 parking spots, which makes parking cars very difficult.

Sandia Lau, a director at Centaline Property Agency, explained more about the ‘luxury residential area.

“The residents have a lot of cash and simply do not care about a few million dollars when a flat costs about HKD100 million,” she said, “Their convenience is more important.”