Hong Kong, China – Hong Kong might be heading for recession after months of violent protests but this hasn’t stopped a single parking space being sold for almost $1 million.
The single, 134.5 square foot parking spot was sold for $970,000, according to local media reports. That works out to just over $7,200 per square foot. By comparison, the average apartment in upscale Manhattan goes for four times less, at around $1,770, according to real estate analytics firm NeighborhoodX. It is situated in The Center, city’s fifth-highest skyscraper, which hit the headlines in October 2017 when it became the world’s most expensive office building after Hong Kong’s richest man sold it for more than $5 billion.
The seller was Johnny Cheung Shun-yee, a logistics tycoon and businessman with a reputation for flipping property. He made around $115 million last year in about nine months by buying and selling floors in an office building. The identity of the buyer was not known.
The purchase comes even though there are growing concerns about the impact of the pro-democracy demonstrations on the city’s real estate market with property firms’ share prices plunging in recent months, as they are forced to offer discounts on new projects and cut office rents. The economy has been tipped to grow just 0-1.0% this year, the worst rate since 2009 during the global financial crisis.
The city is notorious for its high property prices, and has some of the most expensive homes globally.
Hong Kong’s property market has become a political issue as costs continue to soar, forcing some small businesses to close owing sky-high rents while many residents cannot afford to buy or lease decent homes.
Hong Kong’s Gini coefficient was the most for any developed economy in 2016 at a 45-year high, and for all the luxury and glamour, one in five residents live below the poverty line.