$332,000 for a one-car garage is urban sprawl in action

Photo: realestate.com.au

A garage for one car in Sydney, Australia, recently sold for 500,000 Australian dollars, or $332,000. Yes, it’s just a garage. The exorbitant prices reflect the high demand for parking in desirable downtown neighborhoods and the lack of stand-alone garages. A local real estate agent said Yahoo finance that up to 12 percent of a property’s value is tied to parking. Leases for many apartments in Sydney include separate garages nearby.

These are stories of owners buying apartments to rent and keep the garage for themselves. It’s also possible that the garage and apartment have separate titles, which is how we ended up with this scenario. Davide Talone, the real estate agent behind the sale, said Financial analysis:

“I thought $500,000 would be achievable. But we had to put a process in place to get to that number. We arrived at this figure thanks to competition.

“I would go door to door in about fifty units. And he would have gone door to door in four streets which have between 20 and 50 houses. Those I couldn’t have a face-to-face conversation with, I came back, knocked on the door a second time, and left a letter saying, “We’ve been trying to contact you.” This is what we sell, if you are interested, please contact us.

“There were 10 people who were interested initially, but when we showed them the price, there were only four left.”

Several six-figure garages have been sold in Sydney in recent years, and the trend doesn’t appear to be stopping any time soon. Talone pointed out that his buyer was a car enthusiast, but others wanted a garage simply for increase the value of their home.

There are very expensive parking lots in other parts of the world, but they are usually tied to an ultra-luxurious experience. In New York, there are spots in automated parking structures under multi-million dollar buildings. The cost can range from $300,000 to $600,000. It’s a more traditional affair when it comes to parking in Hong Kong, where a $1.3 million parking space includes spa access and bottle service. It’s definitely worth spending on parking.