Experts Advice - Hong Kong Car Park Market
Hong Kong Government car park policy is for Buildings Department to approve building plan to restrict car park supply on average ratio
of 4 - 7 houshold units to 1 car parking space. This policy is recommended by Planning Department.
Because of this policy, car park supply in residential and commercial buildings are always not on 1 to 1 ratio.
But district development will sometimes upset this particular balance of demand and supply ratio in certain areas, motivating some owners to
let out car parking spaces.
Residential buildings car park spply are largely in the hands of developers and land policy. If car park is not restricted to residents only, or
developers want to cash in or use car park as a gift to promote home sales, market supply will increase. Any one of these factors changed will
impact on supply of car parking spaces.
Commercial building car parks are rarely let by individual owners as developers will usually retain car parks in the property portfolio to maintain
property management service level and image of the buildings.
Industrial buildings car parks are unique market. This type of building are usually strata titled ownership, and so are the car park ownerships.
In this kind of leasing, their main tenants tend to be always lorry or truck, and because of size of the vehicles, car parks are always highly
in demand.
As for private car parks in industrial building, they are rarely available and as a result there are always open space car park lots near
industrial areas by Lands Department.
For reference only. It is not investment advice.