While most of us save money to buy the house of our dreams, people in Hong Kong might have a different goal in mind. As reported by Bloomberg, a single parking spot in Ho Man Tin, a residential area in Kowloon, Hong Kong, sold for a whopping HK$6 million, roughly equating to Rs 5.25 crore.
What's even more surprising is that people in Hong Kong are opting to transport their automobiles to other countries to alleviate the burden of an exuberantly priced parking. Darrin Woo, who is a classic car collector, shipped his 1968 Mercedes-Benz 600 Pullman limo, and a fiery red 1957 Fiat Abarth to California to save money on storage; a distance of more than eleven thousand kilometers. "It's crazy," Woo said. "Buy a space? No way. I could buy five cars for that much," he added.
On average, a parking space in Hong Kong is sold for HK$2.25 million (Roughly Rs 1.97 crore), which has increased more than six-times since 2006; while home prices have increased only 3.4 times over the same period. The city's housing market, which is among the costliest in the world, falls short in comparison to the inordinately priced parking space. Additionally, a parking spot costing HK$2.25 million carries a stamp duty of 3 per cent, which further heightens the cost of storage.
Denis Ma, head of research firm Jones Lang LaSalle Inc., holds Hong Kong developers partly responsible for the adverse situation. Developers make more money by building apartments than garages. There is little incentive to build parking spaces, hence the ratio of parking spots to housing units has declined.
Car owners in London and New York face similar woes. As reported by the New York Times, spaces at a luxury condo at 42 Crosby St. in Soho, Manhattan, were advertised for $1 million.
In India, car parking is governed by the Real Estate Regulation and Development Act, 2016.
Section 2(y) of the Act defines "Garage" as a place within a project having a roof and walls on three sides for parking any vehicle, but does not include an uncovered parking space such as open parking areas.
Section 2(n)(iii) includes open parking areas in common areas.
Section 17 holds the promoter of the project liable to transfer and hand over the possession of the common areas to the society, which implies that the common area cannot be sold to an individual allottee.
Thus, it can be concluded that open car parking cannot be sold in India; however, garages, which are enclosed structures specifically designed for parking vehicles, can be sold under the Real Estate Regulation and Development Act, 2016.