Hong Kong - image credt: Andrew TurnerEnlarge Photo
If you had $167,000 to spend, you could buy yourself a brand-new, well-equipped Aston Martin V-8 Vantage Convertible, or perhaps a thoroughly-loaded BMW M6 Convertible. Check all the option boxes on a Porsche Cayenne Turbo, and you’d still have a hard time spending your entire lump sum of cash.
On the other hand, you could invest that money on a single parking space in Hong Kong. As The Detroit News explains, parking spots in the Asian financial hub are selling for ridiculous amounts of money, as investors scramble to acquire real estate not covered by recent measures meant to curb growth.
While buying a home or condo may prove troublesome, buying parking spaces is still relatively easy - if you’ve got the price of admission. Last weekend, 500 parking spaces at a newly constructed apartment complex sold for the equivalent of $167,000 each, but that’s downright reasonable compared to prices paid for other spots.
If you want to park at a particular commercial building near Hong Kong’s city center, a space will cost you $379,412. Actually, it will cost you $12.9 million, since you need to buy a block of 34 spaces, which works out to be $379,412 each. Want a spot in the trendy Repulse Bay area? Expect to pay around $385,380.
Even existing parking spaces have been selling for an average of $82,278, which is an increase of over 16-percent from last year. The growth has many concerned that that the frenzy to buy real estate of any kind, including parking spaces, will create an economic bubble.
As many American home owners learned over the past five years, what goes up must eventually come down. Given that Hong Kong has a finite amount of land to build on, space will always command a premium price. As long as the number of drivers in Hong Kong continues to rise, however, we doubt that pricing bubble will burst any time soon.
Image credit: flickr user Andrew Turner, CC 2.0