Another world record with regards to real estate has been set in Hong Kong after the city-state took the crown of having the most expensive parking space on earth. This is after Kwan Wai-ming, a business man, paid approximately $664,000 for a parking space located in Central Hong Kong.
The parking spot, which measures 188 square feet, is situated on the first floor of a high rise and is approximately 40% larger than the typical parking space in the city-state. Calculated on a square-feet basis, each square foot of the parking space costs $3,532. But even though the city-state also brags of having the most highly priced housing anywhere on earth on a square-feet basis, the amount Kwan spent on the parking space could have been enough to purchase a 2-bedroom flat in some parts of Hong Kong.
Expensive real estate
Previously Kwan has shelled out $9.7 million to acquire two Upton apartments besides paying two other parking spaces for $510,000 and $480,000 respectively. Emperor International Holdings developed the Upton apartment which consists of 48 floors. Before Kwan broke the record, the priciest parking space in the world was still in Hong Kong for which $620,000 was spent in Victoria Peak.
Kwan’s purchase of a parking space at a record price comes in the wake of another tycoon in Hong Kong paying $3 billion to purchase a prime commercial lot located in the Central shopping and business district. It also comes at a time when the high property prices are becoming a hot political issue as small businesses are closing as a result of unaffordable rents. Many residents of the city are also unable to rent or buy decent homes even though the government has put in place measures meant to cool the runaway prices.
Chinese money influx
The soaring property prices are as a result of a money influx originating from developers and investors from mainland China. The government has also been accused of being too close to the investors and developers when it should be giving priority to the building of public housing that is affordable. According to Demographia, a research firm, a typical home in Hong Kong, costs $920,000 giving the city state the tag of having the most unaffordable homes market in the world. This is about a third of the median price of a house in the U.S as the typical home price is $309,200 according to the Federal Reserve.