Want to see your money grow? Buy a car parking space in Hong Kong instead of a flat

If house values in Hong Kong have been rising for the past 18 consecutive months, then a bigger surprise would be the price of parking spaces, which have grown much faster than homes in some areas.

It all comes down to supply and demand. Similar to the shortage of supply in the housing market, the availability of comparatively fewer parking spaces in the city has resulted in sky-high prices wherever there is demand, according to brokerage firm Mizuho Securities Asia.

A study conducted by the brokerage house in three private housing estates – Provident Garden in North Point, Mei Foo Sun Chuen in Lai Chi Kok and Island Harbourview in Tai Kok Tsui – found that the price of a parking space in these places jumped by an average 167 per cent, compared to just 52 per cent for residential units, in the last six years up to the end of the third quarter.

For instance, the price of a parking spot at Provident Garden appreciated by 257 per cent versus 37 per cent gain for a residential unit.

During the same period, average secondary home prices across the city rose about 84 per cent, according to data from Rating and Valuation Department. Home prices, meanwhile, have gained 10 per cent since January this year.