Price of parking set to drop as much as price of flats?

cheepo · 01-03-2013, 09:59 AM

I am not entirely sure this is an intelligent question, but do you think the price of parking spaces will decline as much as the price of flats, more, or less?

More: cars are the first thing that people sell if they have financial problems, and parking is now a bubble caused by the higher taxes/fees for housing. When these taxes/fees are cut, people will sell parking lots and buy flats.

Less: they are (mostly) not bought with mortgages, so if the interest rates of mortgages increases, it won't affect car parks.

What do you reckon?

closedcasket · 01-03-2013, 10:49 AM

I would think there would be some correlation between property prices and parking space price....both are influenced by supply and demand and typically when housing is built...parking space are added too.

Of course that is in a free market situation....the HK has messed with the housing regulations to the point your question becomes a lot more complicated.

Mat · 01-03-2013, 11:40 AM

First let see if the price of properties drop. (in the near future)

walkup · 01-03-2013, 11:58 AM

Whether it is car parks, hotel rooms, timeshares or new builds in the middle of nowhere, I really don't care if the price doubles, halves or disappears down a plughole. I remember guys many aeons ago 'proving' that endowment mortgages were a better deal than vanilla repayment mortgages but I just felt uncomfortable and edged away. I feel the same way about car parks etc.

closedcasket · 01-03-2013, 12:05 PM

Originally Posted by Mat:

First let see if the price of properties drop. (in the near future)

Why? I don't think this op is predicting the price drop as much as he is wondering to what extent property prices are linked to parking place prices. Good question for someone who is thinking of buying a parking spot...

cheepo · 01-03-2013, 01:44 PM

Originally Posted by closedcasket:

Why? I don't think this op is predicting the price drop as much as he is wondering to what extent property prices are linked to parking place prices. Good question for someone who is thinking of buying a parking spot...

Yes, I have one in the building already (came with the property), and the price of rental has gone up 25% in the last 2 years or so. The net revenue (net of management fee) is about 3.8%.

walkup · 02-03-2013, 10:44 AM

Originally Posted by cheepo:

Yes, I have one in the building already (came with the property), and the price of rental has gone up 25% in the last 2 years or so. The net revenue (net of management fee) is about 3.8%.

I would be quite reluctant to sell a parking space attached to an apartment however high its valuation has risen and particularly if the space is undercover (eg basement) and the block itself is in a good location. What one might gain on the space disposal could distract on the apartment valuation further down the road, so to speak.

Joseph098765 · 02-03-2013, 01:37 PM

I will check in my crystal ball and let you know in 2 days.

cheepo · 04-03-2013, 10:16 AM

I could buy a parking lot in my own building. Net revenue (after paying management fees) would be between 4.2% and 4.4%.
Does you people think this is a good investment?
The prices of parking lots has gone up about 10% or so over the last 2 years, but the rental price about 20%.

walkup · 04-03-2013, 10:31 AM

Originally Posted by cheepo:

I could buy a parking lot in my own building. Net revenue (after paying management fees) would be between 4.2% and 4.4%.
Does you people think this is a good investment?
The prices of parking lots has gone up about 10% or so over the last 2 years, but the rental price about 20%.

If you own an apartment in the block, then yes go for it.