Sales of Hong Kong parking spaces drop nearly 46 per cent in first 8 months of year, weighed down by protests

By Martin Choi martin.choi@scmp.com / https://www.scmp.com/business/article/3024463/sales-hong-kong-parking-spaces-drop-nearly-46-cent-first-8-months-year?utm_medium=partner&utm_campaign=contentexchange&utm_source=EdgeProp | September 11, 2019 11:57 AM SGT
Sales of Hong Kong's notoriously expensive car parking spaces dropped more than 40 per cent in the first eight months of the year compared to the same period in 2018, partly due to the ongoing protests dampening investor sentiment, according to analysts.
"The investment atmosphere has been poor over the past few months, particularly from June to August. Without a doubt, this has affected both those wanting to buy and sell [parking spaces]," said Richard Lee, chief executive of Hong Kong Property agency. "A lower supply of parking space has been made available this year, whether from property developers or owners," he said.
The city's slowing economy has made investors cautious, said Reeves Yan, executive director and head of capital markets at CBRE Hong Kong.
"Parking spaces are quite special, because the return on investment is quite low compared to other forms of property, such as office buildings," he said. "Those who buy car parking spaces usually use it themselves rather than for investments. In the current economic environment the transaction volume has decreased, while the price hasn't adjusted to the change."
In the first eight months ending August 22, 4,248 parking spots changed hands, compared to 7,799 in the same period last year, a drop of 45.5 per cent. Transaction volume of parking spaces in terms of the money changing hands dropped 34.1 per cent to HK$9.87 billion in the eight month period, from HK$14.9 billion in the same period last year, according to Land Registry data compiled by Hong Kong Property agency.
Only 3,531 transactions of parking spaces above HK$1 million were recorded in the first eight months of the year, a 41.1 per cent drop from 5,993 parking spaces in the same period last year.
Sales of parking spots between HK$500,000 and HK$1 million dropped 64.4 per cent to 552 from 1,551 in the first eight months last year, while sales of parking bays below HK$500,000 dropped 35.3 per cent to 165 from 255 in the...