Not to sound like a completely left-wing lunatic San Francisco liberal, but this morning I was listening to NPR and… there was a story about the value of parking spots and if Hong Kong real estate has entered a bubble phase based on selling prices for parking spots.
Recently, a developer sold off parking spots in a suburban Hong Kong apartment complex for up to $167,000 per spot. The NPR story also reports that a parking spot in a high-end neighborhood sold for HK$ 3,000,000 which – at current exhcange rates – comes out to roughly $387,000.
All of which makes parking in San Francisco look downright cheap!
I usually counsel buyers and sellers to value an independent, 1 car parking spot at about $50,000. The value can vary a bit based on neighborhood, the specifics of the parking spot, and the building it is located in, but my experience has been that 50k is, as a rule of thumb, pretty reasonable. A valet parking license in the Millennium, for example, sells for $35,000 while developers have sold parking in some smaller new construction buildings this year for as little as $20,000.
The increase in the value of Hong Kong parking spots are the side effect of recent regulations that are trying to put a lid on the already hot Hong Kong real estate market. However, because the recent laws didn’t affect the transfer of parking spots, investors and others have poured money into the market.
Is $167,000 worth it for a parking spot? $125,000? $50,000? What value do you place on having a parking spot? What do you think of the current value of San Francisco residential parking? Too expensive? Underpriced? I’d love to hear your thoughts in the comments below. If you’re feeling shy, feel free to drop me an email or a tweet!