fbpx
Previous
Next

Advertisement Banner

RM1.1 million per car park space is a good business decision, maybe.

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
person holding red umbrella walking on street

RM1.1 million per car park is a good business decision. Nope this car park is NOT in Hong Kong. The Hong Kong one is a lot more expensive yeah. Earlier article here. Do not be surprised with the price of one car park yeah. When car parks can be bought just like a home

Closer to home, car parks are bought not one by one but one whole building. This is in Singapore where less than 10% of the people owns a car. Owning a car is extremely expensive and even the parking itself would be super expensive yeah. This is why it’s really possible to get a loan, buy a car park and earn yields from the car park fees versus the loan repayment every month.

Article in asiaone.com In Singapore, there are few strata-titled car parks in the country and it’s believed the last of them were built around the 1980s. Three such such car parks have been sold since 2020.

  • Holland Road Shopping Centre (47 lots at $17.3 million, $360,000 (RM1.1 million) per car park lot)
  • Bukit Timah Shopping Centre (381 lots at $16.2 million)
  • Parklane Shopping Mall (219 lots at $16.1 million)

Report says that The Holland Road Shopping Centre car park was purchased by a family office from Hong Kong. It was also said that the yields for car parks are comparable to most commercial properties, ranging between four to five per cent. The article is a comprehensive one and there are a lot more details about car parks in Singapore. Article in asiaone.com

How does the yield for car park work anyway?

First of all, no one buys one car park. We are not in Hong Kong. Assuming one whole car park was bought and the price per car park is RM200,000.

Briefly, if one were to buy a car park for RM200,000 and could get a loan for it over 25 years, then the repayment per month may be as follows: Calculator image from calculator.com.my

Thus, as long as the car park would earn a net income of RM1,000 or higher per month, then there’s a chance that the yield could be positive. How does one car park earns RM1,000 per month?

If we assume it’s RM6 per hour and the car park is utilised for 6 hours daily, that’s RM36 per day. Over a period of one month, that’s RM1,080. Usually, weekends would be busier but it’s okay, we calculate an average of 6 hours per day.

This is because all other maintenance costs are for the whole building and not just for that one car park space. This is why it’s really possible to pay an average of RM200,000 per car park and could still get a positive yield.

Nope, I do not have the funds nor the thought to buy one whole car park. Haha. It’s good to to keep abreast of what’s happening to the real estate market which definitely includes car parks too.

Love news like this and more? Sign up for daily investment news updates. Alternatively, Follow me on Telegram here.

Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles. Else, follow me on Twitter here.

Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

Next suggested article: 7 reasons to stop thinking property price will drop 

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

We love to hear from you (Facebook Comment)

LIKE us for property news update, FREE.

Previous
Next

Advertisement Banner

kopiandproperty.com

kopiandproperty.com

kopiandproperty.com is everything about property related writings and news. Enjoy reading with a latte.
Previous
Next

Advertisement Banner

LIKE us for property news update, FREE.

Property investment news everyday? Subscribe for free!

An article a day, keeps updated all the way.

Join 1,544 other subscribers

Property investment news everyday?

An article a day, keeps updated all the way. Subscribe for free!

join the family

Like us for daily investment news and more

Hit the like

%d bloggers like this: