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Forget about castles. This Hong Kong parking space just sold for a world-record $760k

Inkstone logo Inkstone 10/6/2018 Lam Ka-sing
a black car in a dark room © Provided by South China Morning Post Publishers Limited

A couple has pocketed a staggering $330,000 profit by reselling a car parking space, less than nine months after buying it.

The single parking spot at a luxury apartment complex in Hong Kong set a new world record on Monday, changing hands for HK$6 million ($760,000) - or $5,660 per square foot.

The seller, a Hong Kong couple, had paid HK$3.4 million ($433,000) for it in September 2017, according to Land Registry documents.

Hong Kong has been ranked the world's most expensive property market for eight years in a row. Hong Kong has an average residential property of $1,980 per square foot, according to JLL. Manhattan real estate was $1,773 per sq.ft in 2017, according to NeighborhoodX.

The parking spot, measuring 16.4 feet by 8.2 feet, breaks the previous record set in June last year, when a business executive paid HK$5.18 million ($660,000) for a space in the city's Sai Ying Pun area.

"The development is in a luxury residential area. The residents have a lot of cash and simply do not care about a few million dollars when a flat there costs about HK$100 million [$12.8 million]," said Sandia Lau, a director at Centaline Property Agency. "Their convenience is more important."

The record makes Ultima the most expensive place on the planet to park your car - to buy or rent a space. In April, a parking bay in the development was rented out for $1,275 a month, also a record.

According to an agent familiar with the deal, who declined to be named, residents at Ultima tend to favor European high-end sports cars such as Ferraris and Lamborghinis. The couple who sold the Ultima bay had an Audi sedan parked in the space.

The agent said parking spaces at the development are in extremely short supply.

"There are no parking spaces at Ultima on the market now, so you would have to pay a very high price if you want one," he said. "Some of the sellers sold theirs only because they were from the [Chinese] mainland and would usually leave their parking space vacant.

"Some buyers are rich businessmen who now want to buy parking spots for their children."

What do you get the kid with everything? An $800,000 parking space, apparently.

This story originally appeared on Inkstone, a daily multimedia digest of China-focused news and features. Like what you see? Sign up for our newsletter, download our app, or follow us on Twitter and Facebook.

Copyright (c) 2018. South China Morning Post Publishers Ltd. All rights reserved.

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