It is not a secret that the prices of apartments in Hong Kong reached values that are hard to meet by most investors these days, due to the impressive demand. But, what can one do if he or she has some money for investments? Apparently, the best move at the moment is to put money in parking lots.
How come this is such a good choice?
Well, only in the past year and a half, the value of parking lots doubled. Esther Fan, a woman that owns two parking lots in an old residential neighborhood enjoyed an increase of almost HK$90,000, which means US$272,630, as her lots jumped from HK$720,000 to the incredible value of HK$1.6 million.
If we are to look at these numbers, it is easier to see that it is more profitable to invest in parking lots, as the speed at which their value increases is considerably faster than the increase recorded by apartments. In the case of apartments, it took more than 7 years for them to reach a value growth of 120%, as the Centaline Property Agency showed through the data it released. Thus, if between 2010 and 2017, the prices of homes doubled in Hong Kong, the prices of parking lots tripled during the same period, especially those placed in residential areas. But, in spite of the fact that apartments are quite expensive in Hong Kong, their value never exceeds a growth of 100% during a whole year. When it comes to parking lots, that’s an entirely different story, as their increase in value easily goes beyond 100% in one year, as Mrs. Fan noticed.