Investor splurges HK$10m on 10 Taikoo Shing parking spaces as prices slashed by 60%, over 270 sold in a week

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25th February 2024 – (Hong Kong) Swire Properties has been selling off parking spaces at Taikoo Shing, one of Hong Kong’s premier residential estates. Recently, the company has ramped up its sales drive with significant discounts, culminating in an investor snapping up ten spots in a single transaction, amounting to a hefty HK$10 million outlay. This purchase sets the record for the largest transaction in the current sales round.

Alex Yau, Chief Regional Director at Midland Realty, noted the market’s enthusiastic reception to the new batch of parking spaces available at Taikoo Shing. The substantial investment, totalling around HK$10 million, reflects strong market confidence, particularly given that investors, drawn by the potential returns on investment, have accounted for about 70% of purchases. This surge in demand, especially in the Hong Kong Island region, is further bolstered by the prime location of these assets within a blue-chip estate.

According to market insiders, the designated car park slots, initially priced from HK$1.95 million per unit, saw a price reduction to HK$1.37 million to HK$1.51 million after discounts and rental cash rebates. This represents a decrease of approximately 56% to 62% from the original 2020 prices, making them some of the most competitively priced in the Eastern District and attractive for investors aiming for rental income. In just one week, 277 car park spaces were sold, netting over HK$300 million. Rental yields for these car park spaces are estimated to be between 4% to 7%, based on monthly rents ranging from HK$3,200 to HK$5,500.

Furthermore, with the sales momentum continuing, 289 parking spaces had been sold as of noon on the 23rd.

Swire Properties has recently introduced a time-limited offer for designated double parking spaces, starting at HK$1.95 million per set, with a rental cash rebate equivalent to 5% of the sale price per annum for six years, effectively cutting the price by about 60% from the initial 2020 launch. This aggressive pricing strategy has significantly stirred the market.