With more and more commuters and cities becoming densely populated, parking spaces are becoming more and more valuable, especially in Australian cities. The average parking space cost is around $40,000 but can vary from city to city.
In Sydney, it can easily cost a whopping $200,000, so it is easy to see why it is a good investment and parking companies like Parkhound are quick to connect to hosts. I have put this quick guide together to help you understand how much a parking space is worth and whether you should invest in one. Here's what you need to know about buying and selling parking spaces in Australia and why it might be time to get on the market if you're looking for an investment opportunity.
Buying a parking space
Parking spaces are the basic unit of parking in Australian cities, and they're a good starting point if you want to invest in real estate. Parking spaces are small, rectangular areas assigned to residents in apartment buildings or similar multi-unit dwellings. They're typically located on lower levels, near the building's entrance and/or car park.
Buying a parking space comes with many advantages:
• For one thing, it’s easy: all you need is enough money to cover your purchase price plus monthly maintenance fees. Plus, it’s safer than investing in stocks or property because there's no risk of fraud or default—the only way someone can take ownership of a parking space is if they buy it from its owner outright.
• The price of parking spaces has indeed slowed in recent years, but they still far outstrip property price growth. If you're considering investing in a house or unit with a car space already included, then it could be an easy way to save money on your overall purchase.
• However, suppose you're buying off the plan and don't have a car space in your contract. This is typical for some new apartment developments. Other factors must be considered when deciding whether it's worth buying a parking space from your home or unit. In Australia, parking spaces are often sold independently from units or houses. This means you can buy a car park without buying another property—but it could be better to buy both together if your budget allows you to do so!
How much is a parking space worth?
How much is a parking space worth in Australia? It depends on where you live. In some cities, the cost of a parking space can be more than the cost of an entire house. In other places, it's just another overlooked asset that most people have no idea they own.
• There are plenty of examples in Sydney and Melbourne (and even Brisbane), where parking space prices have skyrocketed over the years; some units have increased by as much as $100,000. This isn't surprising given that these three cities have been ranked among Australia's fastest-growing real estate markets for years, particularly concerning CBD apartments with off-street parking.
• Parking spaces near your workplace or home are more expensive than those in the suburbs. The amenities offered in your building may affect the price of your parking space.
It’s no secret that parking spaces are worth a lot of money. In fact, the cost of buying or renting a parking space is often equal to the price of purchasing an entire property. But how much is your own personal piece of real estate worth? And should you buy one?
The answer to that question depends on where you live. The average price of a new car in Australia has increased by $200 and now sits at $36,000. If we assume that increases matched this price increase in demand for parking spaces over the same period (and there’s no reason why it wouldn’t be), then we can use this trend as an indicator for increasing values over time. We may not know how much more expensive parking spaces have become since then, but if they were more expensive back then than now, things probably wouldn't have changed very much!
How to buy a parking space
Parking spaces can be hard to find, but there are ways to get your own space. For example, you can buy an existing parking space from a seller, or you may be able to negotiate with the seller of a property in order to purchase an adjacent private space. If that doesn't work out, you can rent a spot at a local car park instead—and they're often cheaper than buying one outright!
• Search for a property that includes a car space - To buy a parking space in Australia, you'll need first to find a property that contains one. There are two ways to do this: search for properties that include car spaces or those without them.
• You can rent a spot - Rental parking is a good option for people who don't own cars or have been forced to sell them. For example, you could rent a spot in the garage of your apartment building if you're working from home and don't want to park on the street. You can also rent individual parking spaces in private residential areas (called "carports") and public car parks. If you're renting space in a public car park, ensure it's secure—you don't want anyone stealing your car!
• If you're looking for parking space investment opportunities, many different types of properties are available for sale across the country. You can find these online at sites where there are thousands of properties listed on their websites which include underground parking spaces that range in price, depending on location and size available, as well as above-ground or basement car parks, which can cost up to 2 million dollars, depending on how much space they offer inside!
Parking spaces are valuable in Australia but can be challenging to find. Now that you know the different ways to buy a parking spot, it's time to figure out which one is right for you! If you're looking for a private space, consider purchasing an adjacent unit without parking or negotiating with the seller of your new home. For public access parking spots, talk to local councils about permits before making any decisions. I hope this guide has helped you understand how much parking is worth and see what an excellent long-term investment could be.