Parking a car anywhere is quite expensive nowadays – a 12-square-metre car park in Kirribilli sold for $120,000 in June 2015. This may seem hard to comprehend when a majority of parking spaces are free, but many daring investors are proving that car parking spaces can definitely be a viable investment, offering both capital gains and rental return!
Are you in the market for a car loan? Check out our comparison table below to view the current market offerings, sorted by Star Rating (highest to lowest). Please note that this table was formulated based on a $20,000 loan over 5 years in New South Wales, and the results have links to provider’s websites.
Where are car spaces proving to be hot property?
The immediate assumption might be inner-city areas, and that assumption isn’t wrong; CBD areas are among the hardest places to find a park, so investing in a parking space there makes for a smart move. However there are other areas that make for a sound investment; spots next to major train or bus stations can be popular with commuters, and parking spaces in wealthier suburbs will generally come with a price tag appropriate for the area.
| State | Suburb (Postcode) | Price Range/Month (Rent) |
|---|---|---|
| QLD | Brisbane City (4000) | $315-500 |
| Spring Hill (4000) | $220-350 | |
| NSW | Sydney (2000) | $350-520 |
| The Rocks (2000) | $800-850 | |
| Woolloomooloo (2011) | $350 | |
| Neutral Bay (2089) | $245 | |
| North Sydney (2060) | $200-600 | |
| VIC | Melbourne (3000) | $265-350 |
| Docklands (3008) | $200-260 | |
| West Melbourne (3003) | $200-225 | |
| Southbank (3006) | $190-200 | |
| East Melbourne (3002) | $280-290 |
How many car spaces are for sale?
It could be more than you think! A quick search on findacarpark.com.au shows, at time of writing, three carparks for sale in the 4000 Brisbane postcode (with prices ranging from $43,000- $48,000), 15 for sale in NSW postcodes (with prices ranging from $39,000 in Campertown to $400,000 for a pair in Bond St, Sydney). Melbourne lists more than thirty carparks for sale, from $12,000 in St Kilda to $65,000 in South Yarra.
The average person is probably best off buying a single parking space; someone may be selling a parking space attached to their property, or a single space in a parking complex may be up for sale. Sometimes double spaces will be on offer for a slightly discounted price; if you’re interested and you’ve got the cash (or the capacity to take out a loan), these will also make for a sound personal investment, and higher weekly or fortnightly returns.
What do they sell for?
As mentioned above, most single parking spaces will cost you upwards of $30,000, and prices will vary based on location and level of security. Single car spaces in Melbourne’s CBD were fetching up to $98,000 earlier in 2015, and the record sale price for a car space in Sydney’s CBD is $250,000, as opposed to the average Sydney price of $73,000.
It’s certainly an asset class with a difference!
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