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    Forget about castles. This Hong Kong parking space just sold for a world-record $760k
    Forget about castles. This Hong Kong parking space just sold for a world-record $760k
    BUSINESS

    Forget about castles. This Hong Kong parking space just sold for a world-record $760k

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    A couple has pocketed a staggering $330,000 profit by reselling a car parking space, less than nine months after buying it.

    The single parking spot at a luxury apartment complex in Hong Kong set a new world record on Monday, changing hands for HK$6 million ($760,000) – or $5,660 per square foot.

    Group 5
    $760,000
    Price of the 134.5 sq.ft parking space.
    Group 5
    Price of the 134.5 sq.ft parking space.

    The seller, a Hong Kong couple, had paid HK$3.4 million ($433,000) for it in September 2017, according to Land Registry documents.

    The seller, a Hong Kong couple, had paid HK$3.4 million ($433,000) for it in September 2017, according to Land Registry documents.

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    The, um, luxury Ultima development.
    The, um, luxury Ultima development. Photo: Dickson Lee

    Hong Kong has been ranked the world’s most expensive property market for eight years in a row. Hong Kong has an average residential property of $1,980 per square foot, according to JLL. Manhattan real estate was $1,773 per sq.ft in 2017, according to NeighborhoodX.

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    $1,980 per sq.ft
    Average price of residential property in Hong Kong, according to JLL. 
    Group 5
    Average price of residential property in Hong Kong, according to JLL. 

    The parking spot, measuring 16.4 feet by 8.2 feet, breaks the previous record set in June last year, when a business executive paid HK$5.18 million ($660,000) for a space in the city’s Sai Ying Pun area.

    The parking spot, measuring 16.4 feet by 8.2 feet, breaks the previous record set in June last year, when a business executive paid HK$5.18 million ($660,000) for a space in the city’s Sai Ying Pun area.

    “The development is in a luxury residential area. The residents have a lot of cash and simply do not care about a few million dollars when a flat there costs about HK$100 million [$12.8 million],” said Sandia Lau, a director at Centaline Property Agency. “Their convenience is more important.”

    The record makes Ultima the most expensive place on the planet to park your car – to buy or rent a space. In April, a parking bay in the development was rented out for $1,275 a month, also a record.

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    $12.5 million
    Price of a 1,911 sq-ft., 4-bed flat in the Ultima development.
    Group 5
    Price of a 1,911 sq-ft., 4-bed flat in the Ultima development.

    According to an agent familiar with the deal, who declined to be named, residents at Ultima tend to favor European high-end sports cars such as Ferraris and Lamborghinis. The couple who sold the Ultima bay had an Audi sedan parked in the space.

    According to an agent familiar with the deal, who declined to be named, residents at Ultima tend to favor European high-end sports cars such as Ferraris and Lamborghinis. The couple who sold the Ultima bay had an Audi sedan parked in the space.

    The Ultima parking lot, now the most expensive place in the world to buy or rent a space.
    The Ultima parking lot, now the most expensive place in the world to buy or rent a space. Photo: Lam Ka-sing

    The agent said parking spaces at the development are in extremely short supply.

    “There are no parking spaces at Ultima on the market now, so you would have to pay a very high price if you want one,” he said. “Some of the sellers sold theirs only because they were from the [Chinese] mainland and would usually leave their parking space vacant.

    “Some buyers are rich businessmen who now want to buy parking spots for their children.”

    What do you get the kid with everything? An $800,000 parking space, apparently.

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    167%
    Price rise in six years of parking spaces in private housing estates, according to Mizuho Securities Asia.
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    Price rise in six years of parking spaces in private housing estates, according to Mizuho Securities Asia.
    52%
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    52%
    Rise in price of residential units in those housing estates, according to the same survey.
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    Rise in price of residential units in those housing estates, according to the same survey.
    $2,140
    Group 5
    $2,140
    Median monthly wage in Hong Kong.
    Group 5
    Median monthly wage in Hong Kong.
    Lam Ka-sing
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    Ka-sing is a contributor to Inkstone. He is a reporter at the South China Morning Post.
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