Yahoo Finance Agent justifies hefty $1 million price tag on car park: 'Will be $2 million in five years'
The price is more than three times what a similar parking spot sold for earlier this year.
A car parking spot has been put up for sale at Sydney's iconic Bondi Beach and it comes with a hefty price tag. Parking in Sydney can be tough, especially around the biggest hotspots, so if you want to avoid that then all you need is a million bucks in your pocket.
That's the asking price for a spot inside the secure parking garage attached to the exclusive 2-4 Notts Avenue address. While that might sound outlandish, Raine and Horne’s Ric Serrao told Yahoo Finance that spaces in suburbs like Bondi are only going to get more expensive.
“What's a million dollars today, in five years, is going to be $2 million,” Serrao said.
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The spot has been dubbed by the owner as a "once in a generation offering" because you'll be as close to the beach as one could imagine.
"Envision the privilege of arriving at Bondi Beach on a scorching summer day, liberated from the stress of locating a parking space. Instead, you effortlessly drive into your secure personal oceanfront under-cover garage," the listing states.
"This haven boasts not only the closest parking proximity to the beach and Icebergs, but also essential amenities such as power & fresh water, conveniently at your fingertips."
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In addition to forking out a million dollars for the space, you'll also be required to spend $226.88 per quarter on levies.
Yahoo Finance has reached out to the seller for comment.
The price tag is much higher than what was sold earlier this year in the same apartment complex.
A similar parking space went up for auction in January and one lucky bidder walked away with the keys for just $304,700.
On the other side of the beach, an apartment sold for $3.75 million in March and Raine and Horne received an offer during the campaign of $1 million just for the property's garage.
“It was just going to be too complicated to try to break up the title. You'd be amazed how common and how much in demand parking close to the beach is and what someone's prepared to pay," Serrao told Yahoo Finance.
Parking spaces becoming a long-term investment
Unless you're driving to the beach every single day for the rest of your life, forking out $1 million for a parking spot sounds like a dumb idea, right?
Well, they can actually be a decent money-maker over the long term because demand is always fairly high.
Judging from Park Hound, you can rent out a parking spot in Bondi for as much as $780 per month.
But Serrao reckons you can get even more if the space is in a desirable area.
"You could rent that garage for between $250 or $300 a week," he explained, referring to the Ramsgate Avenue property that sold in March.
Aussies buying homes just for the parking spot
Another garage sold earlier this year in the ritzy Sydney suburb of Woolhara for a whopping $500,000.
The selling agent, Ben Collier from The Agency, told Yahoo Finance it was the most expensive parking spot sold in the city from his memory.
“Parking adds I would argue a minimum of 10 to 12 per cent of the overall property per space. It’s more on a percentage basis,” he explained. “This gentleman would have taken a view that if his property is worth $5 or $6 million, the car park reflects the value add to his house.”
It was fairly unique as the garage was on its own title which was separate from the apartment building it was attached to. Collier said he knew of some residents who opted to buy an apartment just to get a parking space.
"There is a high-rise apartment that goes all the way through from Underwood Street to Caledonia," he told Yahoo Finance.
“When an apartment comes up for sale in that particular building, more often than not, it’s an immediate resident who buys that apartment, they keep the car space for themselves but they rent out the apartment.”
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