The other Tung Chung property bubble: parking spaces

More than 30 parking spaces changed hands in Tung Chung this month, driven by the non-residential property boom and the expected impact of the HK-Macau bridge.

New price records were repeatedly set, according to Apple Daily. Caribbean Coast valuations reached a new high four times, rising from HK$1.65 million to HK$1.74 million.

Coastal Skyline and Tung Chung Crescent also changed hands at new highs of HK$1.9 million and HK$1.85 million respectively.

One investor sold a Coastal Skyline apartment for around HK$10 million and has since sunk HK$14 million into eight parking spots, mostlyi in Caribbean Coast, Coastal Skyline, Seaview Crescent and Tung Chung Crescent.

The investor is optimistic that the opening of the Hong Kong-Zhuhai-Macao Bridge will bring demand for parking spots.  Additionally, funds are expected to continue flowing to the non-residential property sector because of the stamp duty that now hits owners of existing residential properties.

Based on the current market rate of Tung Chung parking spaces of about $2,300 to $ 3,500, the rate of return on rental for a group of parking spaces ranges from about 1.6% to 2.4%.

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