‘‘The latest overseas buyers’ stamp duty will just put some fuel onto that fire, and is making the whole parking space investment market go out of control,’’ said Josh Wong, whose Hong Kong City Parking owns about 200 parking spots at eight lots around Hong Kong.
Many investors who buy spaces rent them out to car owners. Wong said he typically looks for an annual yield, or return, of 5 to 6 percent, but because prices have risen, yields have been falling to about 4 to 5 percent. He said has even heard of investors making as little as 1.8 percent on their investment.
Wong, who also runs Parkinghk.com, a website for buyers and sellers of parking spots, said the market was heating up because investors didn’t need a lot of money to get started.
‘‘One million Hong Kong dollars ($129,000) cannot buy anything in Hong Kong. You cannot buy a shop, you cannot buy anything except car parking and that would help the car park investment go even more crazy,’’ he said.
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