Crazy rich Asians—that’s what the rest of the world label the people living in the Orient. Stereotypical as it seems, the opulence of the elite social circles is undeniably striking. They truly live up to the tag with the designer couture, grandiose mansions, and luxury cars they casually sport—not to mention the parking spot that already costs $760,000!
Ultima’s Small Spot Sets World Record for the Most Expensive Parking Space in the World
The single-bay parking spot at Sun Hung Kai Properties’ Ultima high-rise luxury apartments in Kowloon District, Hong Kong, is a testament to the luxurious life the wealthy are leading. The area holds the record for the most expensive parking space in the world. The 12.49-square-meter parking spot was sold for a staggering $760,000 in 2018.
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Sandia Lau, the director of Centaline Property Agency, says that the cost was simply a small price to pay in a development building. More so when safety and “convenience is more important” for occupants who tend to favor expensive cars manufactured by Lamborghini, Ferrari, and the like.
Other than that, a shortage of car spaces supplies surges across the city. In the Ultima property alone, there are only 370 car spaces to accommodate their 527 flats, so residents should be willing to pay a very high price to enjoy a premium private parking.
In fact, residential agents say that the previous owners of the most expensive parking space were lucky enough to secure the spot in September 2017 for only $430,000, despite the great demand. And they’re even luckier when they fetched a $330,000 profit upon reselling it to Jack Chan Siu-kit and Cheung Tsui-ling, owners of major estates in the city.
This isn’t the first time that an exorbitant parking space made local and international news. Back in October 2016, businessman Kwan Wai-ming paid $664,260 for a 17.5-square-meter parking space in Sai Ying Pun, on Hong Kong Island. Estate experts have it that the shortage is changing the themes of the property market in Hong Kong, making car parks a better investment compared to luxury flats.
However, the most expensive parking space of Chan and Cheung might not be a good investment, after all. The Colliers International Deputy Managing Director Vincent Cheung says, “For a parking space of HK$6 million ($760K), the yield may only be 1 percent annually.” This is due to the ever-fluctuating estate market. He also added that a low percentage yield is not a healthy and sustainable long-term option.