Shortage driving up car park rents

Property | Staff reporter 7 Oct 2021

Rents for parking spaces have been skyrocketing recently as the supply of parking lots in big housing estates and newly developed residential areas, such as Kai Tak, Tsuen Wan west and Lohas Park, struggle to keep pace with increasing demand.

On Hong Kong Island, a parking lot in phase 9A of Taikoo Shing has been rented for HK$6,500 a month - a record high for the blue-chip estate.

Following news of the transaction, owners of some 30 parking spaces for lease in the estate have raised their asking rents by about 3 percent, putting them in a range of from HK$5,200 to HK$6,500.

A similar price trend has been observed at South Horizons, another large housing estate in Ap Lei Chau.

The 23 parking spaces put up for leasing come with asking rents of HK$4,500 to HK$5,200. Those in phase two have higher prices in general, says Benny Lou Kiang-hou, chief sales manager in the district, citing a recent lease deal struck for HK$5,100 a month.

In Kowloon, as residents move into the newly completed Grand Central at Kwun Tong, there are only a few parking lots available for lease and rents have risen to HK$7,500.

With only 178 residential parking spaces, the inadequate supply is owing to limited options to purchase. Spaces are exclusively for three-bedroom flat owners and mostly self-occupied, said Kevin Leong Kam-kei, market manager at Ricacorp Properties.

Parking lots in the development have been rented at between HK$5,800 and HK$6,000 a month so far. A parking lot at basement level two, which was sold for HK$2.7 million, was rented at HK$5,800 and enjoys a 2.6-percent rental yield.

Sitting in the Kai Tak development zone, where parking spaces are scarce, K City and Victoria Skye have only two to three parking spaces available for renting at HK$5,500 to HK$6,000 right now. Parking spaces are being snapped up as soon as they are put on the market. One in K City was rented for HK$6,500 a month, said Tsui Wing-chuen, chief associate director at Ricacorp.

In the New Territories, many new residential estates in Tsuen Wan west have seen rising rents for parking lots as well.

Of these estates, owners of parking spaces at Ocean Pride are asking for the highest rents, said Centaline branch manager Ocean Wong Chi-fai.

A total of 10 lots are waiting to be rented out in the estate for HK$6,500 to HK$8,000. Those with charging facilities for electric vehicles can cost as much as HK$7,000, Wong added.

Tseung Kwan O is also short of car parking spaces.

At LP 6, the sixth phase of Lohas Park, only 10 parking lots are up for rent, priced from HK$5,100 to HK$6,200 a month.

Stanley Ng, sales manager at Centaline Property, said a recent deal struck for HK$5,500 a month gives the owner a 3.3-percent rate of return following an April acquisition for HK$2 million.

With just three parking spaces available for lease, the average rental each month for a space in Malibu, the fifth phase of the estate, costs HK$5,500, said Hong Kong Property's area director Ken Lau.

The strong demand for parking spaces is driving up selling prices and rent.

Sing Tao Daily, sister newspaper of The Standard, says prices for parking lots in the 10 major housing estates increased by 2 to 29 percent in August from the beginning of 2021.

Those at Laguna City in Kwun Tong have seen the biggest increase, with parking space rents jumping 29 percent to HK$2.4 million in September from January's HK$1.86 million.

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