Car park ownership is a blooming business in Hong Kong

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Hong Kong is home to some of the most expensive real estate in the world and that includes car park spaces. A single car park in a luxury complex sold for a record HK$6.6 Million or about US$8,50,000. As crazy as it sounds, it is actually not that unusual to find an average car park in the city going for more than HK$ 1 Million. 
In the year 2020, the average car park was about HK$2.14 Million. That is equivalent to the cost of a townhouse in Canada or other parts of the world. The price was much higher in the year 2019. The average price was about HK$2.3 million. The price has actually increased on average about 86% in the past five years. 
Prices are being driven up because supply is limited and there is an increasing number of buyers on the market. And with the money to be made from the car parks, it is also attracting investors. It sounds a little bit interesting, but in Hong Kong people actually buy car parks for investment. The interest rate is super low at the moment. Towards the end of 2020, the government also lowered the stamp duty for non-residential units. 
The stamp duty for a car park under HK$2 million is only HK$100. That attracts some of the investors who do not have a lot of money but who still want to participate in the real estate money. Between 2008 and 2020, the number of private registered cars increased 50% in Hong Kong, that is about 2,10,000 cars. But the number of available car parking spaces only increased 10%, which is equivalent to 66,000 spaces. Car park ownership is a blooming business for investors in Hong Kong.

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