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How to Invest in Car Parks in Hong Kong

Squarefoot Editor  2023-05-15  #Movie #Tips For Transaction

Love ‘em, hate ‘em, or couldn’t car(e) less about ‘em, the car park market is booming in Hong Kong. In fact, the world’s most expensive parking spot (HK$10.2 million, US$1.3 million) hails from Asia’s World City. We look at how to invest in car parks in Hong Kong, top tips for first-time car park investors, and whether you should invest in a parking space in Hong Kong. 

In 2022, the average cost per parking space was around HK$1.75 million. In 2023, the first four months we saw that the average price was about HK$1.78 million, indicating a rise of HK$30,000. Therefore, though buying a car park is a cheaper alternative to other forms of investment, it is important to ensure that you are financially prepared. 

According to Peter Wong, director of research at Hong Kong Property Services (Agency), car park buyers should compare rental prices and evaluate the potential growth of their chosen car park by looking at population increases or decreases in the area. 

He added that first-time buyers should purchase residential car parking spaces for their smaller, stable price range. 

Hong Kong’s property price forecasts predict that the city’s home prices will rebound by 8% to 10% this year. As such, long-term investors might purchase a flat to rent out instead to get a higher return on investment.

Nonetheless, the benefits of car park investment still stand: it remains a low-maintenance, lower-cost alternative to buying a flat in Hong Kong. While car park investment does have a lower yield of 2% to 3%, you can still maximise returns by following the tips above. 

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