Salient to Investors:
Investors reacting to government curbs on home buying are shifting money into parking spaces. The average price of a previously owned parking spot in residential complexes rose in Q3 to the second highest on record. Hong Kong has one of the lowest car ownership rates among developed countries, with 56 cars per 1,000 people versus 439 in the US and 101 in Singapore.
Simon Lo at Colliers Intl said there’s just too much liquidity in the market.
Savills said Hong Kong is the priciest place to buy a home out of 10 major cities, including New York and London.
Kenneth Tsin at Bank of East Asia said Hong Kong banks normally lend a maximum 50 percent of a parking space’s value, versus 70 percent for residential properties. Tsin said parking spaces are less marketable than flats and shops, and their values are less resilient.
IHS Automotive said luxury cars accounted for 47 percent of total private-car sales in Hong Kong during the first 10 months of 2012
Midland Holdings said parking space transactions in Hong Kong in the first 10 months of 2012 accounted for 8.9 percent of all property deals, and the highest since records began in 1997. Buggle Lau at Midland said the taxes have driven investors away from buying apartments.
Read the full article at http://www.bloomberg.com/news/2012-11-26/hong-kong-parking-costs-387-000-as-cash-moves-from-homes.html